News Brief
Chandigarh Tricity Metro Cost Escalates To Nearly Rs 25,000 Crore As Delays Stall Decision-Making
Chandigarh (Representative Image)
The estimated cost of the Chandigarh Tricity Metro has risen to nearly Rs 25,000 crore, climbing by Rs 1,737 crore in just seven months due to administrative indecision, according to a Hindustan Times report.
The figure, revised from Rs 23,263 crore in February, was highlighted on Monday during a meeting of the transport standing committee of the Administrator’s Advisory Council, chaired by AAP’s state president Vijay Pal.
Rail India Technical and Economic Service (RITES), which presented its findings, reiterated that Metro remains the most viable mass rapid transit system for the region, citing its potential to ease congestion, cut pollution and reduce accidents.
However, officials warned that further delays could inflate the project’s cost to as much as Rs 30,000 crore by the time the detailed project report (DPR) is finalised.
The highest projected outlay is on alignment and formation (Rs 6,256 crore) and station buildings (Rs 4,941 crore).
Despite an economic internal rate of return of 16.7 per cent, which exceeds the Metro Rail Policy’s 14 per cent benchmark, the financial return stands at just 4 per cent, excluding land costs, a concern flagged by several members.
“A final ‘yes or no’ decision is now essential, as the DPR has not yet been forwarded to the Centre,” he said, recalling that he had raised the matter in Parliament last month.
The Unified Metropolitan Transport Authority (UMTA), created in 2023 to oversee the project, has not met in nearly a year. Meanwhile, the central government confirmed that no DPR or cost-sharing plan has been submitted.
With both Punjab and Haryana having paid their share for the DPR back in 2023, the project continues to languish in uncertainty even as costs spiral.
