Cost of 2 Metro projects goes up by Rs 6,000 crore in a year

In just over a year since August 2015, two projects of the Mumbai Metropolitan Region Development Authority (MMRDA), have seen an escalation in cost by Rs 6,000 crore. These two projects are Dahisar-Bandra-Mankhurd Metro-2 and Wadala-Ghatkopar-Thane-Kasarvadavali Metro-4. Officials claim that the cost may further escalate.

The estimated cost of the Metro-2 was around Rs 12,000 crore in August 2015, which now stands at Rs 16,986 crore. In the case of the Metro-4, the estimated cost was Rs 12,000 crore in 2015, which has now gone up to Rs 14,000 crore.

The estimated cost of Metro-2B DN Nagar-Mankhurd corridor, a part of the 40-km-long Metro-2 Dahisar-Bandra-Mankhurd has increased from Rs 6,000 crore in 2015 to Rs 10,986 crore this year. An additional Rs 6,000 crore would be utilised for the construction of Dahisar-DN Nagar Metro-2A corridor that brings the total cost of Metro-2 up to Rs 16,986 crore. Further, the Wadala-Ghatkopar-Thane-Kasarvadavali Metro-4 was estimated to cost Rs 12,000 crore in 2015. It now stands at Rs 14,000.

Explaining the calculations behind the increase in the project costs, a senior MMRDA official, not wishing to be named, said, “The lower cost is the base estimation of the project. While, the cost quoted now are the completion cost of both the lines. Further, if there are major changes in terms of alignment or planning there could be more escalation in the total completion cost of both the lines.”