MP Cabinet Approves Indore Metro Revised Budget

26 Jun 2026 CW Team

Madhya Pradesh cabinet approved a revised budget of Rs 194.72 billion (bn) for the Indore Metro Rail Project at a meeting chaired by the chief minister on 16 June. The approval covered the total revised estimate and additional financial costs arising since the original sanction. Officials attributed the revision to integration of complementary projects and to increased costs associated with underground construction and city infrastructure works. The revised allocation consolidates earlier estimates with subsequent financing adjustments.

The original estimated cost published on 3 October 2018 stood at Rs 75.01 billion (bn), and the net rise amounted to Rs 53.89 billion (bn) after accounting for the additional financial elements. The additional costs include purchasing power parity adjustments applied over time and internal borrowings arranged to bridge cashflow requirements. The cabinet documentation indicated that evolving urban demands and project integration were material factors in the upward revision.

The Indore Metro began operations on 31 May 2025 with five stations covering six kilometres and opened for public service. In the first year of service it registered around 0.25 million (mn) commuters, reflecting the early stage of network roll-out and the limited reach of the initial phase. Ridership data for the opening year underlined the need for further route expansion to connect residential and commercial corridors.

The Madhya Pradesh Metro Rail Corporation Limited (MPMRCL) intends to open the second phase on 20 June, adding 11 new stations and 17.5 kilometres of track up to Radisson Square. That extension will connect the system with a major commercial hub and is expected to boost passenger numbers as accessibility improves. The revised budget approval sets the financial framework for completing the integrated phases and meeting additional construction obligations.

Infrastructure Transport

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