Namma Metro Phase-3 May Get Centre's Nod as RITES Finds Project Economically Viable

The long-pending Namma Metro Phase-3 project may finally be closer to getting the Centre's approval, with a draft report prepared by RITES Ltd finding that the revised project remains economically viable despite the addition of the proposed double-decker corridor.

The report has estimated the Economic Internal Rate of Return (EIRR) of the 44.65-km project at 15.9%, higher than the 14% benchmark required for metro rail projects to qualify for Central approval.

The development comes months after the Karnataka government revised the project to include a double-decker structure carrying both a flyover and a metro line.

The Centre had approved Namma Metro Phase-3 on September 13, 2024. However, the approved proposal did not include a double-decker viaduct. The state government later proposed the addition, increasing the project cost by nearly ₹9,700 crore.

The Karnataka government has maintained that the double-decker corridor is necessary to tackle Bengaluru's growing traffic congestion while also improving public transport connectivity.

The revised proposal, however, raised concerns within the Ministry of Housing and Urban Affairs (MoHUA), particularly over whether a flyover above the metro alignment could affect metro ridership by encouraging more people to use private vehicles.

Following these concerns, RITES was asked to study the socio-economic viability of the project.

According to the draft assessment, the project's EIRR has come down from the earlier estimate of 17.04% to 15.9% after the addition of the double-decker corridor. However, the figure remains well above the minimum threshold required for approval.

The findings are expected to strengthen Karnataka's case for securing final clearance from the Centre.

Phase-3 consists of two corridors. The first is a 32.5-km line connecting JP Nagar 4th Phase and Kempapura via Outer Ring Road. The second is a 12.15-km corridor connecting Hosahalli and Kadabagere through Magadi Road.

The project is expected to improve connectivity across several fast-growing parts of Bengaluru and support the city's future transport needs.

The issue was also discussed during Deputy Chief Minister D.K. Shivakumar's meeting with Union Housing and Urban Affairs Minister Manohar Lal Khattar in New Delhi on Wednesday. Shivakumar urged the Centre to approve the double-decker corridor proposal, citing Bengaluru's worsening traffic situation and future infrastructure requirements.

He also sought approval for the revised cost of Namma Metro Phase-2, which has increased to ₹40,425.02 crore.

With the draft report backing the project's viability, Phase-3 appears to have crossed one of its biggest hurdles, bringing Bengaluru a step closer to another major metro expansion.