During a meeting chaired by Haryana additional chief secretary Ashok Khemka at the UT Guest House in Chandigarh, the committee presented its report stating that the project is feasible for the tricity but would become profitable for operators after a decade
The eight-member committee tasked with assessing the financial viability of the Tricity Metro project was directed on Tuesday to reassess and reconfirm the financial viability of the project by February 18.
Haryana additional chief secretary Ashok Khemka asked the committee to present detailed explanations of how ridership projections were calculated and the methodology used, during the next meeting scheduled for February 18. (HT File)
During a meeting chaired by Haryana additional chief secretary Ashok Khemka at the UT Guest House in Sector 6, the committee presented its report stating that the project is feasible for the tricity but would become profitable for operators after a decade. To formulate its recommendations, the committee extensively studied Metro systems in Ahmedabad, Kochi, Jaipur and Noida. The report highlighted that Metro projects are generally planned with a 30-year operational horizon.
However, Khemka asked them to present detailed explanations of how ridership projections were calculated and the methodology used, during the next meeting scheduled for February 18.
The report cited Ahmedabad Metro as a case study, noting that it could take at least five years or more to recover the initial capital investment. It also acknowledged the impact of unforeseen challenges, such as Covid-19 pandemic, which delayed business recovery for the Ahmedabad Metro, launched in 2019.
Formed three months ago, the committee reported that while construction costs for the Tricity Metro project are expected to be recovered within the first five years, profitability for operators is unlikely to materialise before a decade of operations. The estimated cost of the project is ₹24,000 crore.
On November 1, 2024, UT administrator Gulab Chand Kataria established the eight-member committee to evaluate the financial and economic feasibility of the proposed Metro system. The committee was tasked with analysing similar projects, reviewing reports from the Comptroller and Auditor General (CAG), and submitting its findings by mid-January 2025.
For Chandigarh, the Union ministry of housing and urban affairs (MoHUA) has already approved fully underground Metro lines for heritage Sectors 1 to 30.
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News/Cities/Chandigarh/ Chandigarh Metro project: Committee told to reassess financial viability by Feb 18