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

17 Sep 2025 CW Team

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.

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