Why was project cost of Bengaluru Metro Phase-2 increased by 52% to nearly Rs 40,000 crore? – Infrastructure News

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The cost of Bengaluru Metro’s Phase-2 network has surged to almost Rs 40,000 crore, reflecting a 52% increase from the initial estimate proposed in 2014. Initially approved for a 72 km stretch at Rs 26,405 crore, the project was scheduled for completion by 2019. An additional 3 km was added later, and by 2021, the cost was revised to Rs 30,695 crore.

The Bangalore Metro Rail Corporation Ltd (BMRCL) has recently submitted a revised cost proposal to the State Finance Department through the Urban Development Department (UDD) for approval. Notably, this is the second revision of the project. In 2022, the cost of Phase II of Namma Metro project went up by Rs 4,290 crore. 

A senior official stated that the main reason for the cost escalation is the significant delay in the project’s completion. “Phase-II was supposed to be completed by 2019. Five years later, the entire network is still not ready. The pandemic struck after the original deadline. If that had been adhered to, this huge escalation would not have happened,” he explained, also citing initial delays in land acquisition as a major hindrance to the project’s progress.

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A BMRCL official noted that the Reach-2 extension on the West, initially planned to terminate at Kengeri, has been extended to Challaghatta. Additionally, a new depot has been added on the eastern side at Kadugodi (Whitefield). The acquisition of an additional 44 hectares of land, beyond the original plan, has driven the compensation component to nearly Rs 6,300 crore, an increase of Rs 438 crore.

BMRCL has also undertaken road-widening work near several stations, including the stretch from Baiyappanahalli to Kadugodi and Yelachenahalli to Silk Institute. Additional land was also acquired for the Reach-5 line (R V Road-Bommasandra). Following approval from the State Finance Department, the proposal will need to be submitted to the Centre’s Urban Development department for final approval.



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