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Financial Viability Concerns Halts Chandigarh Metro Project
RAILWAYS & METRO RAIL

Financial Viability Concerns Halts Chandigarh Metro Project

The long-running saga of Chandigarh's metro project has hit another roadblock, dimming the prospects of the city seeing a metro system anytime soon. Once hailed as the solution to the growing traffic and parking issues in the Tricity, the project’s future is now uncertain due to concerns about its financial viability. Union Minister of Power and Housing & Urban Affairs, Manohar Lal Khattar, cast doubt on the project's feasibility during a press conference on November 8, 2024. He stated that Chandigarh lacks the ridership needed to support a metro system, further complicating the project's financial sustainability. "While solutions like an underground, elevated, or mixed metro system are being explored, viability depends on projected ridership. Chandigarh does not have the numbers required to support a metro, and in addition to the cost of building the system, we must consider operational expenses," he explained. However, the final decision on the metro project has not been made, and the new year may bring new developments. The government is already exploring alternatives like a ‘Pod Taxi’ system, which could be more compatible with the city's infrastructure and heritage. Khattar supported this idea, suggesting that the system could be built along road dividers, preserving the city's aesthetic while offering a viable transport solution. Following decisions made in the third meeting of the Unified Metro Transportation Authority (UMTA) in September 2024, the Chandigarh administration has set up a committee to thoroughly assess the metro’s financial feasibility. The committee will also review CAG reports on other metro projects and determine whether a metro system is viable or if alternative transport methods should be considered to ease traffic congestion. The estimated construction cost for the metro project is around Rs 211.79 billion, according to a report by Rail India Technical and Economic Service Limited (RITES) in July 2024. Factoring in taxes and escalation, the completion cost could rise to Rs 241.42 billion. In addition to construction costs, land acquisition and operational costs have yet to be fully assessed. The operational and maintenance costs are projected to reach Rs 6.33 billion by 2031, increasing to Rs 37.99 billion by 2056. The construction is expected to take about four and a half years. Previously, UMTA had approved Phase 1 of the project, which would cover 77 km and include three corridors. However, ongoing challenges surrounding funding and ridership continue to delay its progress. (ET)

The long-running saga of Chandigarh's metro project has hit another roadblock, dimming the prospects of the city seeing a metro system anytime soon. Once hailed as the solution to the growing traffic and parking issues in the Tricity, the project’s future is now uncertain due to concerns about its financial viability. Union Minister of Power and Housing & Urban Affairs, Manohar Lal Khattar, cast doubt on the project's feasibility during a press conference on November 8, 2024. He stated that Chandigarh lacks the ridership needed to support a metro system, further complicating the project's financial sustainability. While solutions like an underground, elevated, or mixed metro system are being explored, viability depends on projected ridership. Chandigarh does not have the numbers required to support a metro, and in addition to the cost of building the system, we must consider operational expenses, he explained. However, the final decision on the metro project has not been made, and the new year may bring new developments. The government is already exploring alternatives like a ‘Pod Taxi’ system, which could be more compatible with the city's infrastructure and heritage. Khattar supported this idea, suggesting that the system could be built along road dividers, preserving the city's aesthetic while offering a viable transport solution. Following decisions made in the third meeting of the Unified Metro Transportation Authority (UMTA) in September 2024, the Chandigarh administration has set up a committee to thoroughly assess the metro’s financial feasibility. The committee will also review CAG reports on other metro projects and determine whether a metro system is viable or if alternative transport methods should be considered to ease traffic congestion. The estimated construction cost for the metro project is around Rs 211.79 billion, according to a report by Rail India Technical and Economic Service Limited (RITES) in July 2024. Factoring in taxes and escalation, the completion cost could rise to Rs 241.42 billion. In addition to construction costs, land acquisition and operational costs have yet to be fully assessed. The operational and maintenance costs are projected to reach Rs 6.33 billion by 2031, increasing to Rs 37.99 billion by 2056. The construction is expected to take about four and a half years. Previously, UMTA had approved Phase 1 of the project, which would cover 77 km and include three corridors. However, ongoing challenges surrounding funding and ridership continue to delay its progress. (ET)

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