Railway Board Receives Draft MoU for ₹4,200 Crore Chennai Metro-MRTS Takeover

Chennai Metro MRTS merger plans are closer to final approval. Southern Railway has forwarded the draft Memorandum of Understanding to the Railway Board. The step concerns the long-discussed Mass Rapid Transit System transfer. It would place the system under Chennai Metro Rail Limited. This is reported by the railway transport news portal Railway Supply.

The proposal would link the city’s two main urban rail systems more closely. It is expected to support smoother interchange and upgraded infrastructure. It also points to a better commuting experience for millions of residents.

Draft MoU moves to Railway Board clearance

As UNI reported, the draft MoU was submitted after months of discussions. If the Railway Board clears it, the next step is the agreement. The Tamil Nadu government and Southern Railway will then sign it. That would allow phased MRTS integration into the Chennai Metro network to begin.

The Railway Board had already granted in-principle approval for the takeover in July 2025. The draft MoU is now with the Railway Board for clearance. The proposal has reached its final administrative stage.

Under the proposed arrangement, CMRL will gradually take over MRTS operations. Also, Southern Railway will support maintenance during a two-year transition period. In addition, the Tamil Nadu government is expected to reclaim substantial land parcels. These parcels are associated with the MRTS corridor.

Chennai Beach–Velachery corridor upgrades

According to PSU Connect, the Chennai Beach–Velachery elevated corridor is set for a major upgrade. Meanwhile, the state government is expected to invest about ₹4,000–4,200 crore. The investment would cover station redevelopment and new rolling stock. It would also cover unified ticketing and better passenger facilities.

The merger is being presented as a landmark change for Chennai’s public transport system. It is expected to enable:

• easier transfers between Metro and MRTS services;
• a unified fare structure;
• modern air-conditioned coaches;
• improved station accessibility and amenities;
• higher service frequency and reliability.

Chennai Metro MRTS merger timeline

Officials expect the full transition to be completed in 2027–2028. Once completed, the city is expected to have an integrated mass rapid transit system. That system is expected to be more efficient and comfortable.

The MRTS has operated separately for more than three decades. Still, its integration with CMRL is expected to address long-standing underutilization. It is also expected to strengthen the corridor’s role. The corridor is an important north-south route in Chennai’s public transport network.

The Tamil Nadu government has reiterated its commitment to funding the required upgrades. Also, support from multilateral agencies remains possible. The move is being described as a major gain for Chennai commuters. It is also described as a critical step toward a unified, high-capacity urban rail network.

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