Odisha terminates Bhubaneswar Metro Rail project agreement with DMRC over Feasibility concerns

Bhubaneswar, India (Metro Rail Today): In a major policy shift, the Odisha Cabinet has approved the termination of its agreement with the Delhi Metro Rail Corporation (DMRC) for the proposed Bhubaneswar Metro Rail Project, citing serious concerns related to feasibility, ridership projections, and compliance with national guidelines.

The decision was taken at a Cabinet meeting chaired by Chief Minister Mohan Charan Majhi on March 28, 2026, following the recommendations of an Inter-Ministerial Committee (IMC) constituted to review the project. After a detailed assessment, the committee highlighted that the proposal did not align with the National Metro Rail Policy (2017), while projected traffic demand and ridership levels were found to be below the prescribed thresholds. The Cabinet also noted that continuing the project in its current form could have resulted in recurring operational losses, placing a long-term financial burden on the state.

The state government has approved an expenditure of ₹273.51 crore incurred on the project up to December 31, 2025. At the same time, the IMC has been authorised to evaluate any future liabilities or financial implications arising from the termination and submit its recommendations to the Chief Minister for further decisions.

In a strategic shift, the Odisha government plans to repurpose the Bhubaneswar Metro Rail Corporation Limited (BMRCL) as a nodal agency to facilitate inter-departmental coordination for the state’s Sustainable Urban Mobility Transition Plan. The entity may also be utilised as a Special Purpose Vehicle for future mobility and infrastructure projects, reflecting a broader shift toward integrated transport planning.

Looking ahead, the state intends to adopt a more comprehensive and region-focused mobility strategy. With technical assistance from the Asian Development Bank (ADB), Odisha will prepare a Comprehensive Mobility Plan for the Bhubaneswar–Cuttack–Puri–Paradeep Economic Region. The plan will focus on transit-oriented development, multi-modal integration, and inclusive, sustainable transport systems to ensure long-term viability and efficiency.

Commenting on the development, Chief Secretary Anu Garg said that the decision is a prudent step to safeguard public resources while laying the foundation for a future-ready and regionally integrated public transport system aligned with Odisha’s vision of Viksit Odisha by 2036.

Offering an industry perspective, Mrs. Mamta Shah, MD & CEO, Urban Infra Group, said, “This decision underscores the importance of aligning metro projects with realistic demand projections and policy frameworks. Cities must adopt integrated mobility planning approaches rather than isolated infrastructure investments to ensure long-term sustainability and financial viability.”

The termination of the Bhubaneswar Metro project marks a significant reset in Odisha’s urban transport strategy, reflecting a growing emphasis on data-driven, multimodal, and financially sustainable mobility solutions that are better suited to evolving urban and regional dynamics.