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GMRL plans to revise cost of Gurugram Metro project to ₹10,000 crore
GMRL has also reworked estimates for the cost of setting up stations, adding the rolling stacks and change in GST rates
Gurugram: The Gurugram Metro Rail Limited (GMRL) has proposed to revise the cost of the Gurugram Metro project from the already approved ₹5,452 crore to double the amount at over ₹10,000 crore. The proposal to be submitted in the next GMRL board meeting, indicates that the cost revision is being done since the sanctioned project cost was based on 2019 rates and six years have elapsed, officials said.
The provisions of the detailed project report (DPR) allow 5 per cent per annum escalation in the project, GMRL officials added.
GMRL has also reworked estimates for the cost of setting up stations, adding the rolling stacks and change in GST rates.
The Gurugram Metro project is now likely to be completed for over ₹10,000 crore instead of the earlier approved ₹5,452 crore, according to the revised estimate proposed by GMRL. The additional costs being proposed by the metro corporation are on account of changes in the cost of alignment and formation from the sanctioned ₹1100 crore to over ₹1700 crore, increase in cost of station buildings from the sanctioned ₹756 crore to over ₹1350 crore. The cost of building the depot has increased from the sanctioned ₹80 crore to over ₹200 crore. Another major increase is the cost of acquiring the rolling stock from the sanctioned ₹480 crore to ₹1250 crore, officials said.
According to the GMRL proposal, the sanctioned cost of the project is ₹5,452 crore while the revised cost of the project will be over ₹9,800 crore, with an additional spur to the Gurugram railway station that will cost over ₹400 crore, taking the total cost of the project to over ₹10,000 crore.
“The proposal is likely to be submitted for the next GMRL board meeting scheduled to be held on June 16,” a senior government official, requesting anonymity said.
The metro corporation’s proposal has justified the increase in the project cost stating that there has been price escalation in the last six years since 2019, when the price was set for the project estimate. It added that GST rates have been increased from 12% to 18% since then.
The proposal further said that another reason for the increase in the cost of the metro project is the non-availability of rapid metro infrastructure which was considered while calculating the original cost. There is also an increase in the requirement of coaches for the Gurugram metro project, while the approved DPR took into account only 60 coaches. A new spur has been added to connect the Gurugram railway station with the Sector 5 metro station, the proposal said.
