The Chennai Metropolitan Development Authority (CMDA) is mulling cancellation of certain infrastructure projects,  including the Global Sports City plan, beachfront development, and waterfront restoration plans, as it grapples with outstanding liabilities of roughly ₹3,500 crore.

The liabilities are mainly due to the construction work, land acquisition amounting to ₹1,500 crore, and the Vada Chennai Valarchi Thittam, which constitutes ₹1,000 crore.

This proposal to cancel the projects will take shape only after the State government takes a call, according to a source.

“Whichever project has not yet been taken up, CMDA is in the process of cancelling it. Once the proposal [for cancellation] is approved [by the State], the CMDA will formally announce the cancellations,” the source said.

The Global Sports City project, for which former Chief Minister M.K. Stalin had laid the foundation stone in February 2026, will be handed over to the Sports Development Authority of Tamil Nadu, the source added.

It was planned across a 127-acre site near Sathyabama Institute of Science and Technology at an estimated cost of ₹261 crore. This project took shape in November 2024, after the then Deputy Chief Minister and Sports Minister Udhayanidhi Stalin held a meeting with officials of various departments, including Tamil Nadu Sports Development Authority, Water Resources Department, Tamil Nadu Housing Board, and CMDA.

Among other projects proposed to be dropped are beach-front development works, covering the stretches from Marina to Besant Nagar, Elliot’s Beach to Neelankarai, Neelankarai to Akkarai, Akkarai to Kanathur and Kanathur to Kovalam, including Marina Beach, Broken Bridge, Elliot’s Beach, Thiruvanmiyur, Neelankarai, Akkarai, Uthandi, Muttukadu, and Kovalam.

Marina corridor

Notably, in April 2025, the CMDA unveiled the ₹18.45-crore Marina Heritage Corridor Development Project, as part of this, spanning 2.5-km from Lighthouse to Island Grounds, with plans for heritage-style bus stops, viewing decks, cycle tracks, police booths and improved pedestrian infrastructure, to enhance the Marina promenade, while preserving its historic character.

In 2024, the CMDA prepared detailed project reports for the rejuvenation of 10 lakes across the Chennai Metropolitan Area with an estimated ₹100-crore State allocation. The proposed works include lakefront promenades, walking tracks, viewing decks, ecological restoration, wetland restoration, bird-watching areas, and recreational facilities at Velachery, Retteri, Mudichur, Puzhal, Adambakkam, Sembakkam, Perumbakkam, Kolathur, Madambakkam, and Ayanambakkam lakes, according to the CMDA.

“The CMDA does not have funds to go ahead with these projects. The authority is not the custodian [of the waterbodies]. The waterbodies belong either to the WRD or the respective local body,” the source said.

The operation and maintenance of completed projects, including the M.S. Swaminathan Wetland Eco Park at Porur and the air-conditioned bus stand at Retteri Junction, Kolathur, will be handed over to the Greater Chennai Corporation, and that is the model to be followed for the other finished or nearly finished works by CMDA, the source added.

“CMDA took up a lot of works without realising the financial burden.  CMDA has outstanding liabilities of around ₹3,500 crore and cannot take up new works in the present financial position,” the source said.

Further, the Authority is exploring alternative funding options, including external borrowings for future projects. “Typically, planning authorities in cities such as Mumbai and Hyderabad receive government support. CMDA will also require similar support,” the source said. Local bodies have other revenue generation modules such as ticketing few projects, municipal bonds etc., but that is not the same for CMDA, the source added.

Land pooling projects

The proposed land pooling schemes at Thirumazhisai and Madambakkam have also been delayed. According to the source, the Madambakkam scheme is pending owing to litigation challenging the Land Pooling Act, while the Thirumazhisai project is facing financial constraints.

Under the model, 60% of the developed land is returned to landowners, while CMDA retains 40% for roads, parks, open space reservation, water supply infrastructure, and commercial development, the source added.

Published – July 09, 2026 05:00 am IST