Bangalore Namma Metro Phase-2 Project: What Caused The Project Cost To Reach Rs 40,000 Crore?

The cost of Bengaluru Metro's Phase-2 network has surged to nearly Rs 40,000 crore, marking a 52% increase from the initial estimate proposed in 2014. Originally approved for a 72 km stretch at Rs 26,405 crore, the project was expected to be completed by 2019. After adding an extra 3 km, the estimated cost was revised to Rs 30,695 crore by 2021.

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. This represents the second revision of the project's cost. In 2022, the Phase-2 cost of the Namma Metro project increased by Rs 4,290 crore.

A senior official explained that the primary reason for the cost escalation is the significant delay in the project's completion. "Phase-2 was supposed to be completed by 2019. Five years later, the network is still not finished. The pandemic struck after the original deadline, and had the deadline been met, this substantial escalation might have been avoided," the official noted, also citing initial delays in land acquisition as a major factor in the project's delay.

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

BMRCL has also initiated road-widening projects near several stations, including the Baiyappanahalli to Kadugodi stretch and the Yelachenahalli to Silk Institute stretch. Additional land has been acquired for the Reach-5 line (R V Road-Bommasandra). Once approved by the State Finance Department, the proposal will be forwarded to the Centre's Urban Development department for final approval.