The Chennai Metropolitan Development Authority (CMDA) has decided to withdraw from construction activities and refocus on its core mandate of urban planning and approvals, after spending nearly ₹3,000 crore over two years and sliding into a negative balance of ₹1,500 crore.
Financial Drain and Mandate Misalignment
Over the past two years, the CMDA funded several projects including Vada Chennai Valarchi Thittam, Mudhalvarin Padaipagams, libraries, Thirumazhisai Bus Terminus, Mudichur Bus Terminus, Ornamental Fish Market, and other city-based infrastructure such as bus terminals and building development.
An official stated, “About ₹3,000 crore has been spent on construction works alone in the last two years, and our balance is in negative of ₹1,500 crore now. There’s no money left for any new construction. Construction is not CMDA’s mandate. Despite lacking an executive wing with different tiers of engineers to monitor execution, the authority ventured into special infrastructure and construction projects.”
The official added that the CMDA lacked the wherewithal to review quality and maintain assets post-construction due to the absence of engineers.
Review and Reassessment
During a recent review meeting, the CMDA concluded that it had strayed from its original role of scrutinizing planning approvals, creating residential and commercial layouts, and collecting scrutiny fees, instead venturing into full-fledged construction works. “We end up handing over the assets to other departments to maintain. This doesn’t fetch any revenue for CMDA too,” officials said.
Historically, the CMDA provided funds to other departments for specific projects based on proposals, without undertaking construction itself. The review revealed that even the corpus revenue built up since 1972 through interest earnings had been completely exhausted.
The new TVK government has dissolved the CMDA ministry created by the previous DMK government, and the department now reports directly to the housing ministry, as was the practice earlier.
Historical Role and Future Plans
The CMDA was instrumental in developing neighborhoods such as Anna Nagar, Mogappair East and West, OMR, Koyambedu, and Virugambakkam. However, officials noted that no new neighborhood plans have been created in the last five years, except for an on-paper township in Thirumazhisai.
“CMDA in the last two years did not create any new plotted development areas, neighborhoods, layouts, and land pooling which is its mandate. Now, we will move back to these basics, and exit from construction,” the official said. The authority’s current revenue stands at ₹15 crore, and it plans to increase this through land pooling projects and layout creations.
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