
The Ministry of Railways has approved a Memorandum of Understanding between Southern Railway and the Tamil Nadu government for handing over the Mass Rapid Transit System (MRTS) suburban services to the State. The MoU was signed on Tuesday by Southern Railway, the Tamil Nadu government, and Chennai Metro Rail Ltd (CMRL). The handover will take place within 90 days of signing, with Southern Railway continuing train operations and maintenance during a 24-month transition period.

The MRTS network, with 20 stations from Chennai Beach to St. Thomas Mount, will be integrated with Chennai's broader public transport system. A separate MoU will be executed for transferring the MRTS to CMRL, with the Chennai Unified Metropolitan Authority coordinating the process.
The MRTS has long been a fiscal drain on the Railways, carrying far fewer passengers than its 1970s-era design intended. A 2017 CAG report flagged that operating costs exceeded revenue every year since launch. Handing it to a State government shifts the subsidy burden from the Union to Tamil Nadu. The real test will be CMRL's ability to raise non-fare revenue through station commercialisation and property development to make the line viable. Watch for the final takeover date 90 days from the MoU and whether the State announces a fare revision or integration with Chennai Metro's ticketing system.
Source: thehindubusinessline.com
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