+
CAG Flags Planning And Land Cost Issues In Bangalore Metro
RAILWAYS & METRO RAIL

CAG Flags Planning And Land Cost Issues In Bangalore Metro

The Comptroller and Auditor General of India (CAG) has identified multiple deficiencies in planning, land acquisition, execution, financial management and operations of the Bangalore Metro Rail Project implemented by Bangalore Metro Rail Corporation Limited (BMRCL). The CAG presented Performance Audit Report No. seven of 2026 in Parliament and noted shortcomings that it said undermined project returns and operational performance. BMRCL is a 50:50 joint venture of the Centre and the Karnataka government and the audit covered phases one and two up to March 2021, with selected contract progress reviewed to March 2023.

Commercial operations of Phase one began in a phased manner from October 2011 and were fully operational by June 2017 over 42.30 kilometres, while Phase two services commenced partly between January 2021 and March 2023 over 27.36 kilometres with the balance planned for completion by December 2026. The audit stated that Phase two detailed project reports were prepared without a comprehensive mobility plan, transit oriented development strategy or coordinated land use policy, which the CAG said limited the case for heavy metro investment.

The audit found that projected peak hour peak direction traffic figures were significantly higher than actual levels in 2021, with PHPDT ranging from 6,429 to 8,852, and that ridership assumptions used to calculate financial and economic returns appeared to have been overestimated. Improper land estimation and delays in acquisition were reported to have increased land acquisition cost by Rs 66.03 bn. The report identified excess land compensation of Rs 2.95 bn, additional interest paid of Rs 1.87 bn at 12 per cent for delayed notifications, and taxes in estimates of nine civil contracts that raised costs by Rs 12.22 bn.

The CAG further observed that BMRCL remained dependent on the Karnataka government to service project debt owing to insufficient revenue and cash losses, with actual farebox revenue of Rs 17.58 bn against projected revenue of Rs 77.37 bn during 2016-17 to 2022-23. The audit attributed low ridership to factors including lack of integration with city bus services, inadequate last-mile connectivity and insufficient parking. It also noted that 0.223 mn of 0.246 mn sq ft of built-up area at stations remained vacant, causing an estimated loss of Rs 385.30 mn in lease-rent revenue during 2019-22.

The Comptroller and Auditor General of India (CAG) has identified multiple deficiencies in planning, land acquisition, execution, financial management and operations of the Bangalore Metro Rail Project implemented by Bangalore Metro Rail Corporation Limited (BMRCL). The CAG presented Performance Audit Report No. seven of 2026 in Parliament and noted shortcomings that it said undermined project returns and operational performance. BMRCL is a 50:50 joint venture of the Centre and the Karnataka government and the audit covered phases one and two up to March 2021, with selected contract progress reviewed to March 2023. Commercial operations of Phase one began in a phased manner from October 2011 and were fully operational by June 2017 over 42.30 kilometres, while Phase two services commenced partly between January 2021 and March 2023 over 27.36 kilometres with the balance planned for completion by December 2026. The audit stated that Phase two detailed project reports were prepared without a comprehensive mobility plan, transit oriented development strategy or coordinated land use policy, which the CAG said limited the case for heavy metro investment. The audit found that projected peak hour peak direction traffic figures were significantly higher than actual levels in 2021, with PHPDT ranging from 6,429 to 8,852, and that ridership assumptions used to calculate financial and economic returns appeared to have been overestimated. Improper land estimation and delays in acquisition were reported to have increased land acquisition cost by Rs 66.03 bn. The report identified excess land compensation of Rs 2.95 bn, additional interest paid of Rs 1.87 bn at 12 per cent for delayed notifications, and taxes in estimates of nine civil contracts that raised costs by Rs 12.22 bn. The CAG further observed that BMRCL remained dependent on the Karnataka government to service project debt owing to insufficient revenue and cash losses, with actual farebox revenue of Rs 17.58 bn against projected revenue of Rs 77.37 bn during 2016-17 to 2022-23. The audit attributed low ridership to factors including lack of integration with city bus services, inadequate last-mile connectivity and insufficient parking. It also noted that 0.223 mn of 0.246 mn sq ft of built-up area at stations remained vacant, causing an estimated loss of Rs 385.30 mn in lease-rent revenue during 2019-22.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Syrma SGS Elemaster Opens High-Reliability Electronics Facility

Syrma SGS Technology and Elemaster Group have inaugurated a new high-reliability electronics manufacturing facility in Bengaluru through their joint venture, Syrma SGS Elemaster Private Limited.The facility aims to strengthen India’s advanced electronics manufacturing capabilities and support customers across domestic and global markets, particularly in sectors requiring high quality, reliability and stringent manufacturing standards.Located in the Bommasandra Industrial Area, the 20,000 sq. ft. facility is equipped with advanced Surface Mount Technology (SMT), Through-Hole Technology (THT) ..

Next Story
Real Estate

UrbanVault Expands Chennai Workspace Portfolio with 100,000 Sq. Ft.

UrbanVault has expanded into Chennai with approximately 100,000 sq. ft. of managed workspace across three properties, strengthening its presence in India’s flexible workspace market.The company’s Chennai portfolio includes Olympia Teknos and UV IPL in Guindy, and Ceebros Chambers on Velachery Main Road. The expansion marks UrbanVault’s entry into its seventh city, taking its national footprint to more than 3 million sq. ft. across 80+ centres.UrbanVault expects its annual revenue to cross Rs 350 crore in FY27, supported by expansion across major business hubs and rising demand for manage..

Next Story
Real Estate

LML Realty Launches Digital Platform for Custom Factories

LML Realty has launched ‘Your Factory’, a digital platform that enables businesses to configure, customise and order built-to-suit factories online. The platform combines plot selection, factory specifications, pricing and development into a single digital interface.Businesses can select plot sizes ranging from 500 sq. yd. to 10 acres and customise requirements such as factory size, height, structure, crane provisions and power needs. The platform provides instant quotations, allowing users to view configurations and pricing while designing their facilities.Pricing for the built-to-suit fa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code