Metro project cost soars to ₹25,000 crore as Chandigarh admn sits on decision
RITES tells the transport standing committee of Administrator’s Advisory Council that Metro is the most suitable mass rapid transit system for the region
With the UT administration dragging its feet on a decision, the cost of the long-pending Tricity Metro project has climbed to nearly ₹25,000 crore, up from ₹23,263 crore in February 2025.
The steep ₹1,737-crore rise in just seven months was brought up during a meeting of the transport standing committee of the Administrator’s Advisory Council on Monday, chaired by AAP state president Vijay Pal.
During the meeting, Rail India Technical and Economic Service (RITES) gave a presentation, strongly recommending that Metro remains the most suitable mass rapid transit system (MRTS) for the region.
According to RITES, the Metro will significantly reduce road traffic congestion, accidents and pollution.
RITES further pointed out that delays were inflating the project cost, which could shoot up to ₹28,000- ₹30,000 crore by the time the detailed project report (DPR) is finalised.
The maximum expenditure is expected on alignment and formation ( ₹6,256 crore) and station buildings ( ₹4,941 crore), followed by rolling stock ( ₹1,264 crore), traction and power supply ( ₹1,598 crore), signalling and telecommunication ( ₹1,523 crore), maintenance depots ( ₹559 crore) and permanent way for mainline and depots ( ₹874 crore).
The project’s economic internal rate of return (profitability) was assessed at 16.7%, which is considered economically viable under the Metro Rail Policy, 2017, as it exceeds the 14% benchmark.
However, the financial internal rate of return (return on investment) was pegged at just 4%, excluding land costs, which raised concerns among committee members.
Some members questioned the omission of land and rehabilitation costs, warning that the actual project expense could escalate further. The committee eventually referred the matter to an expert panel formed by the UT administration for final recommendations.
Why is Metro not moving
In November 2024, UT administrator Gulab Chand Kataria had constituted an eight-member panel to assess the financial viability of the Tricity Metro project.
The panel, headed by the UT chief engineer, was tasked with analysing similar projects, reviewing reports from the Comptroller and Auditor General (CAG), and submitting its findings by mid-January 2025.
Over the past nine months, the committee has held three meetings, with the Rail India Technical and Economic Services (RITES) also submitting the sought reports.
However, the administration has yet to act on these submissions, further dragging the long-pending project.
One year without UMTA meeting
The Unified Metropolitan Transport Authority (UMTA), set up on April 28, 2023, to oversee the Metro project, has convened only three meetings so far—the last one on September 2, 2024. For nearly a year now, no UMTA meeting has been held.
Chaired by the UT administrator, the body includes ministers and officials from Punjab and Haryana. In its last meeting, it was decided to conduct a fresh feasibility review of the project.
Of the total project cost, 20% will be paid by Punjab, Haryana and Chandigarh, 20% by the Centre and remaining 60% by the lending agency.
MP calls for urgent decision
Meanwhile, Congress MP Manish Tewari has demanded that Punjab and Haryana chief ministers and the Chandigarh administrator convene a decisive meeting. He stressed that despite repeated discussions and reports, no clarity has emerged on whether the project will be approved.
“A final ‘yes or no’ decision is now essential, as the DPR has not yet been forwarded to the Centre,” Tewari asserted.
Tewari had even taken up the issue during the Lok Sabha session last month. He had sought updates on the number of meetings by the Unified Metropolitan Transport Authority (UMTA), set up to oversee the project, the review status of the latest feasibility study conducted by RITES, and whether any joint proposal had been submitted by Punjab, Haryana and the UT administration. He had also enquired about the timeline for DPR completion and the cost-sharing formula among stakeholders.
Tokhan Sahu, minister of state for housing and urban affairs, in response, had informed the House then that the DPR for the Metro project has not yet been submitted to the central government. Moreover, no details have been provided regarding the estimated cost of the project or any financial collaboration model among the stakeholders.
Both Punjab and Haryana had paid their share of ₹1.37 crore each for preparation of DPR in August-September 2023. But even two years later, there has been no concrete progress.
The DPR is required for final nod from the Union ministry housing and urban affairs. The DPR approval will pave the way for soil testing and other pre-construction requirement, before the project actually gets underway.
