Chandigarh Metro Rail Project faces further delays as Committee fails to reach conclusion

Chandigarh, India (Metro Rail Today): The long-awaited Tricity Metro project faces yet another setback as the eight-member committee evaluating its financial viability failed to reach a conclusive decision in its second meeting on Tuesday. This development further delays the project, which has already been under consideration for an extended period.

The committee first convened on January 28 and was tasked with reassessing the financial feasibility of the project. However, despite reviewing key aspects such as ridership projections, financial estimates, and feasibility analysis, the panel has been unable to provide a final recommendation.

Chaired by Haryana additional chief secretary Ashok Khemka, the meeting at UT Guest House in Sector 6 concluded with a directive for committee members to present a comprehensive written report detailing ridership projections and methodology by next month.

A senior official who attended the meeting stated, “We were anticipating a go-ahead today, but with the next meeting scheduled for next month, the project will be pushed back by at least three more months.”

Financial Viability and Metro Case Studies

The panel conducted an in-depth analysis of Metro projects in Ahmedabad, Kochi, Jaipur, and Noida to understand their financial models. The findings indicate that while the Tricity Metro project is financially viable, it may take up to a decade for operators to achieve profitability.

A case study of the Ahmedabad Metro highlighted that the recovery of initial capital investment could take at least five years, though unforeseen challenges like the Covid-19 pandemic had further delayed financial returns for the system, which commenced operations in 2019.

Projected Costs and Profitability Concerns

Formed three months ago, the committee estimated that the ₹24,000 crore Tricity Metro project could recover its construction costs within the first five years of operation. However, sustained profitability for operators is unlikely before ten years.

The committee was established by UT administrator Gulab Chand Kataria on November 1, 2024, to evaluate the economic feasibility of the Metro system. It was assigned to analyze similar projects, review reports from the Comptroller and Auditor General (CAG), and submit its findings by mid-January 2025.

With the next meeting expected to take place next month, stakeholders and commuters eagerly await a resolution that could finally set the wheels in motion for the much-anticipated Tricity Metro project.