Chandigarh Metro cost climbs to Rs 25,000 crore amid delays
RAILWAYS & METRO RAIL

Chandigarh Metro cost climbs to Rs 25,000 crore amid delays

The long-awaited Chandigarh Tricity Metro project has seen its estimated cost balloon to nearly Rs 25,000 crore, following delays in approvals by the Union Territory administration. The cost, which stood at Rs 23,263 crore in February 2025, has risen by Rs 1,737 crore in just seven months, according to officials.

The matter was raised during the transport standing committee meeting of the Administrator’s Advisory Council, chaired by AAP state president Vijay Pal. A presentation by Rail India Technical and Economic Service (RITES) strongly recommended that the Metro is the most suitable mass rapid transit system for Chandigarh, Mohali, and Panchkula.

RITES noted that prolonged indecision was driving costs higher and warned that expenses could escalate to Rs 28,000–30,000 crore by the time the detailed project report is finalised. The bulk of the cost is allocated to alignment, formation, and station buildings.

While the project’s economic internal rate of return was calculated at 16.7 per cent—above the Metro Rail Policy benchmark of 14 per cent—its financial rate of return stood at just 4 per cent, raising questions about its investment viability.

The long-awaited Chandigarh Tricity Metro project has seen its estimated cost balloon to nearly Rs 25,000 crore, following delays in approvals by the Union Territory administration. The cost, which stood at Rs 23,263 crore in February 2025, has risen by Rs 1,737 crore in just seven months, according to officials.The matter was raised during the transport standing committee meeting of the Administrator’s Advisory Council, chaired by AAP state president Vijay Pal. A presentation by Rail India Technical and Economic Service (RITES) strongly recommended that the Metro is the most suitable mass rapid transit system for Chandigarh, Mohali, and Panchkula.RITES noted that prolonged indecision was driving costs higher and warned that expenses could escalate to Rs 28,000–30,000 crore by the time the detailed project report is finalised. The bulk of the cost is allocated to alignment, formation, and station buildings.While the project’s economic internal rate of return was calculated at 16.7 per cent—above the Metro Rail Policy benchmark of 14 per cent—its financial rate of return stood at just 4 per cent, raising questions about its investment viability.

Next Story
Infrastructure Urban

CM Inaugurates Rs 3.7 Billion Vilholi Water Treatment Plant in Nashik

Chief Minister Devendra Fadnavis inaugurated the Nashik Municipal Corporation’s 274 MLD Vilholi Water Treatment Plant and the upgraded Mukane water supply scheme, a Rs 3.7 billion project designed to provide a reliable and sustainable water supply to more than 55 lakh residents. The system will also cater to over 1 crore visitors expected during the 2027 Simhastha Kumbh Mela.Funded partly through Rs 2 billion Green Sustainable Bonds, the project strengthens Nashik’s long-term water security, ensures year-round availability, and enhances the city’s preparedness for peak tourist inflow. It..

Next Story
Infrastructure Urban

Indian Speciality Chemical Industry Poised for Strong Global Growth

The International Center for Biosaline Agriculture (ICBA), in partnership with Al Rostamani Group, has inaugurated three major facilities at its Dubai headquarters: a Training and Knowledge Transfer Building, a Plant Tissue Culture Laboratory, and an Integrated Agri-Aquaculture System. The launch took place in the presence of H.E. Dr. Amna bint Abdullah Al Dahak, Minister of Climate Change and Environment, marking a significant step forward in strengthening the UAE’s agricultural innovation ecosystem.Fully funded by Al Rostamani Group, the new facilities reinforce ICBA’s role as a leading ..

Next Story
Infrastructure Energy

Mooreast to Explore Up to 500 MW RE Projects in Timor-Leste

Mooreast Holdings, listed on the Singapore Exchange Catalist, announced that it will begin feasibility studies this month for the development of up to 500 megawatts (MW) of large-scale renewable energy (RE) projects in Timor-Leste.The studies follow a Letter of Intent (LOI) signed between Mooreast and the Secretario de Estado de Electricidade Agua e Saneamento (SEEAS), the secretariat for Electricity, Water and Sanitation under Timor-Leste’s Ministry of Public Works. Under the LOI, Mooreast will explore the development of 300–500 MW of floating renewable energy over the next five to ten ye..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement