Metro project back on track with positive viability report
Munieshwer.Sagar@timesofindia.com
Chandigarh: Still chugging along in the "planning" stage, the Metro project received a fresh green signal from Rail India Technical and Economic Services (RITES) in its latest, "Scenario Analysis Report" (SSR).
In the report, RITES pegged the economic internal rate of return (EIRR) between 14.35% and 32.33%, indicating the economic viability of the metro for the Tricity. The EIRR indicates the financial viability of a project and the economic activity or return on investment it will generate.
According to the Centre's, Metro Policy, 2017, "While appraising such project proposals, the economic and social viability may be assessed.
The economic internal rate of return for any metro rail project proposal should be 14% and above for consideration of its approval."
The financial internal rate of return (FIRR) for all corridors ranges between 1.7% (where corridor 3 is underground) and 4% (where corridor 3 is elevated), according to the figures submitted in the SSR.
By 2031, the daily ridership of the metro is estimated to reach 6.5 lakh, and by 2056, it is pegged at 11.30 lakh.
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A discussion on the report was held Chandigarh Administration officials and RITES on Tuesday. During the meeting, chaired by UT chief engineer, C B Ojha, the administration sought further clarifications from RITES on aspects of the report, like ridership figures. If satisfied with the RITES responses, the report will be examined at the level of the eight-member committee constituted to examine the financial viability of the metro.
The SSR report was submitted to the eight-member committee constituted by the Punjab governor and UT administrator, Gulab Chand Kataria in November, 2024. The committee, which was constituted to assess the financial viability of the Tricity Metro project, met twice earlier this year. In the meeting held in February this year, the committee directed RITES to provide clarifications on ridership, fare revisions, and traffic growth estimates.
Earlier, the Unified Metropolitan Transport Authority (UMTA), in January 2024, gave in-principle nod to the proposed metro routes.
RITES proposed an 85.65km metro project for the Tricity in phase 1. It will have three corridors. Corridor-1 has been proposed from Paroul, New Chandigarh to Sector 28, Panchkula via Railway Station. Corridor-2 will be from Sukhna Lake to Sector 21, Panchkula via Chandigarh Airport and ISBT, Zirakpur.
Corridor-3 is proposed to start from Grain Market Chowk to Transport Light Chowk.
Revenue and cost estimates
Revenue
As per the SRR, the metro will earn a total revenue of Rs 1,369 crore by 2031 and Rs 8,182 crore by 2056. The fare box revenue of the metro is estimated to be Rs 1,245 crore by 2031. It will increase to Rs 7,431 crore by 2056. Fare box revenue is the income generated by the metro from fares paid by passengers. The non-fare box revenue will be Rs 124 crore by 2031 and Rs 743 crore by 2056.
Costs
Completion cost of the metro is pegged at Rs 25,631 crore to Rs 30,498 crore, depending on whether an elevated or underground network is opted for. Operation and maintenance (O&M) cost for the project will range between Rs 631 crore and Rs 697 crore by 2031. By the year 2056, O&M costs will range between Rs 3,787 crore and Rs 4,071 crore.
'Cost is decisive factor'
In an exclusive interview with Times of India in May this year, Punjab governor and UT administrator Gulab Chand Kataria, stated, "The key to the effectiveness of the public transport system is its affordability. People will opt for public transport if it is affordable. With a small percentage of the estimated cost of the metro, I can run so many new buses in the city and even run these for free for the public!"
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