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)

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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)

Next Story
Infrastructure Urban

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Next Story
Infrastructure Transport

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Next Story
Infrastructure Transport

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement