CMDA to Exit Construction Projects and Refocus on Urban Planning
The Chennai Metropolitan Development Authority (CMDA) has decided to exit all construction activities and refocus entirely on its core mandate of urban planning and development regulation. The decision follows a financial review showing the authority has run into a negative balance of ₹1,500 crore after spending ₹3,000 crore on construction works over the last two years, affecting future development in areas like Anna Nagar.
According to CMDA officials, there is no money left for new construction projects. The authority lacks an executive wing with different tiers of engineers to monitor project execution, review construction quality, or maintain assets after they are built.
In the last two years, the CMDA funded several major infrastructure projects, including the Vada Chennai Valarchi Thittam, Mudhalvarin Padaipagams, libraries, the Thirumazhisai Bus Terminus, the Mudichur Bus Terminus, and an ornamental fish market. However, officials noted that these completed assets are handed over to other departments for maintenance, which does not fetch any revenue for the CMDA.
A review of the authority's finances revealed that even its corpus revenue, which had been built up since 1972 through interest earnings, has been entirely exhausted. Consequently, the TVK government has removed the dedicated CMDA ministry created by the previous DMK government, placing the department back under the direct control of the housing ministry.
Historically, the CMDA was instrumental in planning and creating major Chennai neighbourhoods, including Anna Nagar, Mogappair East, Mogappair West, OMR, Koyambedu, and Virugambakkam. However, officials stated that no new neighbourhood plans have been created in the last five years, except for an on-paper township in Thirumazhisai.
With current revenues standing at ₹15 crore, the CMDA plans to return to its basic functions. The authority will focus on land pooling projects, creating layouts, and developing plotted areas to rebuild its revenue instead of engaging in full-fledged construction.
