In yet another instance of disseminating false information at taxpayers’ expense, the TN Fact Check Unit—a controversial state government agency often accused of targeting opposition voices—has wrongly claimed that the Central Government is providing only ₹7,425 crores in funding for the Chennai Metro Rail instead of the actual ₹63,246 crores.
The Fake News Peddled By TN Fact-Check
The DMK government’s TN Fact Check posted on social media that the BJP wrongly claims that the Central Government is funding ₹63246 crores of Phase 2 of the Chennai Metro Rail project.
The post said that the Central Government was funding only ₹7,425 crores, with the state government putting in ₹22228 crores and the rest ₹33593 through loans based on guarantees of the Tamil Nadu government.
சென்னை மெட்ரோவிற்கு ரூ63,246 கோடி நிதி அளித்ததாகப் பொய்!@CMOTamilnadu @TNDIPRNEWS https://t.co/yL6xjdUCM6 pic.twitter.com/fEZnrZKleD
— TN Fact Check (@tn_factcheck) October 4, 2024
You-Turn, a Dravidianist propaganda media outlet whose former Editor-In-Chief now leads the TN Fact Check unit, falsely claimed that the responsibility for repaying the Chennai Metro loan ultimately lies with the state government. They cited an official Government of India press release asserting that the state must step in if Chennai Metro Rail Limited (CMRL) cannot meet its repayment commitments. This narrative, however, distorts the actual terms and misrepresents the situation.
What’s The Truth?
The Union Cabinet recently approved Chennai Metro Rail Project Phase 2 as a ‘Central sector’ project at an estimated cost of ₹63,246 crore. Previously, the project was classified as a ‘State sector’ initiative, with the Government of Tamil Nadu responsible for financing nearly 90% of the project cost. The Central Government’s contribution was limited to 10%, excluding land and certain other expenses, as per the 2017 Metro Rail Policy. However, the Centre had helped Tamil Nadu secure ₹32,548 crore in loans from bilateral and multilateral agencies, of which around ₹6,100 crore has been used.
With this new approval, the central government will finance about 65% of the project cost, covering the entire loan amount of ₹33,593 crore, along with equity and subordinate debt of ₹7,425 crore. The State Government will fund the remaining 35%.
The loans from international agencies will now be treated as central government loans and routed directly to Chennai Metro Rail Limited (CMRL) through the Centre’s budget instead of through the State Government. This change relieves Tamil Nadu of securing loan financing for the project, freeing up ₹33,593 crore for other state development activities.
The Ministry of Finance will renegotiate loan terms with agencies like the Japan International Cooperation Agency, Asian Development Bank, Asian Infrastructure Investment Bank, and New Development Bank to treat the loans as central government debt. The loan flow will now go from these agencies to the central government and then directly to CMRL. The Ministry of Housing & Urban Affairs, through CMRL, will take over as the project’s executing agency from the State Government.
CMRL will be responsible for repaying the loans, typically starting after a five-year moratorium. That means, this repayment will start tentatively from 2032. If CMRL is unable to repay, the State Government will be obligated to provide financial support for the repayment. The CMRL is a joint venture of Government of India and the State Government of Tamil Nadu.
It is utterly absurd to prematurely assume that CMRL will be unable to service the loan, especially given the potential for increased ridership and passenger growth. This raises the question: has the TN Fact Check Unit somehow time-travelled and assessed CMRL’s financial status years ahead? Their conclusions seem far-fetched and speculative at best.
Other Instances Of TN Fact-Check Peddling Fake News
Previously on 24 January 2024, The official Tamil Nadu BJP handle released a video alleging severe food shortages at the MGR Stadium in Madurai, claiming athletes were provided only a chapati and a half-boiled egg. Athletes and coaches raised concerns about the inadequate food portions, with reports indicating a private contractor managing the food arrangements. The district administration, including Collector Sangeetha, intervened, assuring prompt resolution of the issues within a day. DMK MP Venkatesan emphasized the potential harm to Tamil Nadu’s reputation, and the official fact-check team of the state government refuted the claims, labeling them as fake news.
In November 2023, when allegations of Aavin reducing fat content in the green packet milk surfaced, instead of proving that the milk contained a specific amount of fat as claimed or other details that pertained to the topic of discussion, the FCU’s Mission Director ended up fact-checking the “container” in which the sample was received.
About TN Fact Check
The DMK government in Tamil Nadu has faced criticism for establishing a state-run FCU. Critics allege that this unit, headed by former and Dravidian propagandist YouTuber Iyan Karthikeyan, was created without transparency and aimed to crack down on dissent. Concerns have been raised about the lack of public notice for job recruitment and potential favouritism in appointments, sparking allegations of suppressing free speech and to cover-up government fallacies. A public interest litigation (PIL) has been filed against the unit in the Madras High Court, challenging its constitutionality.
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