Haryana cabinet approves revised HORC project cost of over ₹11,000 crore

The project is being executed through a joint venture structure under Haryana Rail Infrastructure Development Corporation (HRIDC), with participation from key stakeholders including government agencies and private partners such as Maruti Suzuki India Limited and Allcargo logistics

The council of ministers approved the revised cost estimate of the Haryana Orbital Rail Corridor (HORC) project. Once completed, the HORC project will provide direct rail connectivity to major industrial and logistics hubs such as Kharkhauda, Manesar, and Sohna, while supporting the development of new townships in the Haryana NCR region.

The revised estimate also incorporated additional project components and scope enhancements. (HT Photo for representation)

An official spokesperson said a revised project cost of about ₹11,709 crore was approved as against the earlier sanctioned cost of ₹5,618 crore. The revision reflected updated cost assessments based on current market conditions, project scope enhancements, and policy changes. The revised estimate had earlier been approved by the Board of Directors of Haryana Orbital Rail Corporation Limited (HORCL) and the Special Purpose Vehicle (SPV) responsible for project implementation. The corridor is expected to play a critical role in facilitating freight movement, reducing transit time, and promoting industrialisation in the state, the spokesperson said.

The project is being executed through a joint venture structure under Haryana Rail Infrastructure Development Corporation (HRIDC), with participation from key stakeholders including government agencies and private partners such as Maruti Suzuki India Limited and Allcargo logistics.

The spokesperson said the increase in project cost can be primarily attributed to multiple factors, including a sharp rise in land acquisition costs, charge in alignment, new bridges in the NCR region, general cost escalation over time, and an increase in GST rates on works contracts from 12 % to 18%. Additionally, changes in railway policies and the need for upgraded technical specifications have contributed to higher construction costs.

The revised estimate also incorporated additional project components and scope enhancements, including modifications to railway yard infrastructure and connectivity improvements in certain sections, which were not part of the original plan. These additions are aimed at improving operational efficiency and ensuring seamless integration with existing and upcoming rail and freight corridors, including the Dedicated Freight Corridor (DFC).