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
Equipment

BKT Partners All Teams in India’s Women’s T20 League

Balkrishna Industries (BKT), a global leader in the off-highway tyre market, announced its association as the Official Tyre Partner for all five teams competing in India’s premier women’s T20 championship – Mumbai Indians, Royal Challengers Bangalore, Delhi Capitals, Gujarat Giants, and UP Warriorz – for the upcoming season. This move reinforces BKT’s commitment to using sport as a platform for inclusion, opportunity, and long-term development.These partnerships reflect BKT’s belief in the transformative power of sport, particularly in advancing women’s participation and creating..

Next Story
Infrastructure Energy

Rajesh Power Secures 65 MW BESS Project in Gujarat

Rajesh Power Services has recently secured a 65 MW / 130 MWh standalone Battery Energy Storage System (BESS) project in Gujarat, marking its entry into utility-scale energy storage. The company received a Letter of Intent from Gujarat Urja Vikas Nigam for the project, which will be developed at Virpore under a tariff-based competitive bidding mechanism supported by Viability Gap Funding through the Power System Development Fund.The project is expected to be executed within 18 months from the signing of the Battery Energy Storage Purchase Agreement. With the ability to supply 65 MW of power for..

Next Story
Infrastructure Energy

ONGC Forms JV with MOL for Ethane Shipping Operations

Oil and Natural Gas Corporation (Oil and Natural Gas Corporation) has recently entered the ethane shipping segment through joint venture agreements with M/s Mitsui O.S.K. Lines Ltd (Mitsui O.S.K. Lines), Japan. The agreements involve equity participation in two joint venture entities—Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited—registered at GIFT City, Gandhinagar.Under the arrangement, ONGC will subscribe to 2,00,000 equity shares of Rs 100 each in both entities, resulting in a 50 per cent equity holding in each joint venture, with the remaining stake ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App