Tricity Metro project: Panel now told to give detailed report on ridership estimates
The panel’s first meeting was held on January 28, where members were directed to reassess and reconfirm the project’s financial feasibility
{Tricity Metro project}
The eight-member committee tasked with assessing the financial viability of the Tricity Metro project met for the second time on Tuesday but failed to reach a conclusion, delaying the already long-pending project further.
The committee’s first meeting was held on January 28, where members were directed to reassess and reconfirm the project’s financial feasibility.
At Tuesday’s meeting, chaired by Haryana additional chief secretary Ashok Khemka at the UT Guest House in Sector 6, committee members were instructed to present a detailed report on ridership projections and methodology for each corridor by next month.
A senior official present at the meeting said, “We have now been asked to submit the details in a written report. We were expecting the go-ahead today, but with the next meeting scheduled for next month, the project will be delayed by at least three months.”
During the meeting, the committee reviewed ridership estimates, financial projections and feasibility analysis. The panel concluded that while the Metro project was viable for the tricity, it would take at least a decade for operators to achieve profitability. To formulate its recommendations, the committee extensively studied Metro systems in Ahmedabad, Kochi, Jaipur and Noida. The report highlighted that Metro projects were typically planned with a 30-year operational horizon.
Using Ahmedabad Metro as a case study, the report noted that recovering the initial capital investment could take at least five years. It also acknowledged the impact of unforeseen challenges, such as the Covid-19 pandemic, which delayed business recovery for Ahmedabad Metro, launched in 2019.
Formed three months ago, the committee reported that while construction costs for the Tricity Metro were expected to be recovered within the first five years, profitability for operators was unlikely before a decade of operations. The estimated cost of the project is ₹24,000 crore.
On November 1, 2024, UT administrator Gulab Chand Kataria had established the committee to evaluate the financial and economic feasibility of the proposed Metro system. The panel was tasked with analysing similar projects, reviewing reports from the Comptroller and Auditor General (CAG), and submitting its findings by mid-January 2025.