Chandigarh, June 17 — Thirteen years after it was first conceived and eight years after being shelved, the ambitious Chandigarh Metro project is now gaining momentum again, with a high-level meeting of officials from Chandigarh, Punjab, and Haryana scheduled today to evaluate its feasibility and economic viability.
The joint committee — an extension of the Chandigarh Unified Metropolitan Transport Authority (UMTA) — will deliberate on the Scenario Analysis Report (SAR) submitted by RITES Ltd., which outlines technical, operational, and financial aspects of the proposed 85.65-km, three-corridor metro system connecting Chandigarh, Mohali, and Panchkula.
According to officials, the SAR includes key metrics such as transport demand assessment, ridership projections, fare structure comparisons, financial and economic internal rates of return, and a comparative study of metro projects across India.
🔹 Cost & Return Estimates
RITES has pegged the capital cost of the project (excluding land) at:
- ₹23,263 crore for elevated corridors
- ₹27,680 crore for underground corridors
With completion costs (including taxes) projected till 2031:
- ₹25,631 crore for elevated corridors
- ₹30,498 crore for underground corridors
However, the Financial Internal Rate of Return (FIRR) stands at just 5.26% for the elevated model and 4% for the underground — both below ideal investment thresholds.
🔹 Fare & Ridership
Metro fares have been benchmarked against the Delhi Metro’s 2024–25 structure with a projected 5% annual increase, though the committee has flagged this as potentially unrealistic. The fare comparison with CTU bus fares shows the metro could cost 1.05 to 1.75 times more.
A major concern remains the gap between projected and actual ridership, a point that the CAG had raised in past audits of other Indian metro systems. The committee has asked RITES to reassess its conversion models, fare hike assumptions, and traffic growth projections, currently pegged at 3% per annum.
🔹 Revival Timeline
- 2012: DPR submitted by DMRC
- 2015: MoU signed; SPV “Greater Chandigarh Transport Corporation” formed
- 2017: Project scrapped for poor financial viability
- 2022–2023: Project revived; RITES asked to revise plan
- 2024: DPR finalised; joint committee formed in November
🔹 Today’s Meeting Crucial
After two rounds of deliberations earlier this year, today’s stakeholder meeting is expected to finalise recommendations based on the SAR. The committee will then forward its report to the Chandigarh Administration for final consideration.
If approved, this metro line could become a vital backbone of public transport for the 3 million+ population of the Tricity region grappling with mounting traffic and air pollution.
Next steps include final greenlight from the Centre, stakeholder financing commitments, and ground implementation planning — potentially marking a historic shift in urban mobility for the region.
