STN: The estimated cost of the long-awaited Chandigarh Metro Project has touched nearly ₹25,000 crore. In February 2025, the figure was ₹23,263 crore. Within just seven months, costs have increased by around ₹1,737 crore.
Officials fear that if approvals continue to get delayed, the total may rise further to ₹28,000–30,000 crore by the time the Detailed Project Report (DPR) is finalised.
The matter came up at a Transport Standing Committee meeting of the Administrator’s Advisory Council. The meeting was chaired by Vijay Pal, AAP’s state president for Chandigarh.
Why RITES is Backing the Chandigarh Metro Project
During the meeting, the Rail India Technical and Economic Service (RITES) gave a presentation. It strongly supported a metro as the best Mass Rapid Transit System (MRTS) for the Chandigarh-Mohali-Panchkula region.
RITES highlighted the following benefits of a metro system:
- Reduce road traffic congestion
- Bring down road accidents
- Cut air pollution
- Save fuel and time in the long run
However, RITES also warned that delays in approvals will only push up the cost of the project.
Cost Breakdown of the Metro
The Chandigarh Metro Project has a projected cost of ₹25,000 crore. Major components include:
| Category | Estimated Cost (₹ Crore) |
|---|---|
| Alignment & Formation | 6,256 |
| Station Buildings | 4,941 |
| Traction & Power Supply | 1,598 |
| Signaling & Telecommunications | 1,523 |
| Rolling Stock | 1,264 |
| Permanent Way (Mainline & Depots) | 874 |
| Maintenance Depots | 559 |
RITES further stated that factors such as inflation, land acquisition, and pending approvals could push the figure above ₹30,000 crore.
Economic vs Financial Viability
From an economic perspective, the project looks viable. The Economic Internal Rate of Return (EIRR) stands at 16.7%, which is higher than the 14% benchmark of the Metro Rail Policy, 2017.
But the Financial Internal Rate of Return (FIRR), without land costs, is only 4%. This has raised concerns about commercial returns.
According to Mamta Shah, MD and CEO of Urban Infra Group, “Metro systems often bring economic and social benefits that do not always reflect in financial return figures. These include mobility improvements, cleaner air, and higher productivity.”
What the Chandigarh Metro Project Means for the Tricity
The project is planned to cover over 70 km across Chandigarh, Mohali, and Panchkula. It will connect:
- PGIMER
- Chandigarh Railway Station
- Inter-state bus terminals (ISBTs)
- IT Park
- Panchkula Sector 20
- Mohali Airport Road
- Aerocity
Apart from mobility, it is also expected to boost real estate growth and regional economic activity.
Road Ahead
For now, the Chandigarh Metro Project is waiting for final approvals. The DPR requires clearance from the UT Administration, the Punjab Government, and the Haryana Government. After this, it will be submitted to the Ministry of Housing and Urban Affairs (MoHUA) for central funding.
If authorities do not act soon, costs will rise further. With increasing traffic congestion and fast-paced urbanisation in the Tricity, many believe that a metro is the only long-term solution.
FAQs on Chandigarh Metro Project
A: The project will start only after the UT, Punjab, Haryana, and the central government approve the Detailed Project Report (DPR).
A: Authorities plan to build the metro in multiple phases, beginning with high-demand routes like ISBT, PGIMER, and Airport Road.
A: A joint venture between the central and state governments will likely operate the metro system.
A: Officials will decide the fare structure later, but they usually keep metro fares moderate to attract maximum riders and cover costs.
A: Construction of the first phase may take 5–7 years once authorities grant approvals and complete land acquisition.
