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Bhopal Metro Project Budget Balloons as Construction Costs Continue Rising

Bhopal Metro’s cost has risen 43% to Rs. 10,033 crore due to delays, higher material prices, and design changes, reflecting rising costs of urban projects nationwide.

BY Asma Rafat
Published - Tuesday, 11 Nov, 2025
Bhopal Metro Project Budget Balloons as Construction Costs Continue Rising

When the Bhopal Metro project was first announced in 2017–18, it was pitched as a transformative leap for the city’s urban mobility, a sleek, modern system promising faster, greener travel. But eight years later, that vision has come at an unexpectedly steep price.

The cost of Bhopal’s much-anticipated Metro Phase-I project has soared to levels that few anticipated when the plan was unveiled eight years ago. From an initial estimate of Rs. 6,941 crore in 2017–18, the project’s budget has now climbed to Rs. 10,033 crore, an escalation of nearly 43%.

Back then, the 27.9 km network was projected to cost around Rs. 249 crore per kilometre. But with rising prices of steel, cement, and other construction materials, coupled with higher taxes, design modifications, and years of delay, the per-kilometre cost now stands at approximately Rs. 372 crore—an increase of Rs. 122 crore per kilometre.

At this revised figure, the Bhopal Metro’s budget now matches the combined cost of building nearly ten Bus Rapid Transit System (BRTS) corridors. The 26 km BRTS line from Bairagarh to Misrod, for instance, was developed for just Rs. 350 crore. In other words, the cost overrun alone, about Rs. 3,000 crore which could have funded multiple new BRTS projects across the city.

Cost Escalation Mirrors a Wider National Trend

Such cost escalation is not unique to Bhopal. Across India, large urban transport projects have seen steep inflation in construction costs. For metro rail systems, the current benchmark ranges from Rs. 250 crore to Rs. 400 crore per km, depending on whether stretches are elevated or underground. Over a decade, even modest delays can push total costs upward by 40–80%, especially in projects where design revisions and import-dependent components come into play.

In Bhopal’s case, the project has endured several rounds of delays in tendering, land acquisition, and construction sequencing. Each revision brought new financial implications, alterations to alignments, technology upgrades, and inflation-linked increases in material costs.

A Comparison in Perspective

When first conceived, the Metro was envisioned as a modern, high-capacity mass transit backbone that would ease congestion and cut down travel time across Bhopal. However, the financial trajectory shows how rapidly costs can spiral even in mid-tier cities.

The city’s initial proposal aimed to build two corridors connecting Karond Circle to AIIMS and Bairagarh to Mandideep. Based on the revised budget, the cost per kilometre now rivals that of larger metros like Pune and Lucknow. In practical terms, three kilometres of the Bhopal Metro today cost as much as building an entire 26-km BRTS line.

To put this in context, a single BRTS corridor in Bhopal, such as the one from Bairagarh to Misrod, cost Rs. 350 crore. The total cost escalation of the Metro is over Rs. 3,000 crore which is therefore equivalent to developing about nine or ten such corridors, each capable of serving tens of thousands of commuters daily.

A Case for Rebalancing Urban Transport Priorities

The Bhopal Metro’s cost jump underscores the need for cities to evaluate project scale against affordability and demand. While metros offer speed and capacity, bus-based systems like BRTS can cover a wider area at a fraction of the cost, with faster implementation timelines and lower maintenance.

For cities with moderate population density and growing suburbs, hybrid models combining metro, BRTS, and feeder services could deliver greater value. BRTS networks can typically be built in under three years, whereas metro projects often take a decade or more.

Toward Smarter Infrastructure Planning

The sharp rise in Bhopal Metro’s costs is a reminder that urban mobility planning in India must evolve beyond aspiration-led projects to data-driven, cost-efficient strategies. Integrating lower-cost transport systems, optimizing existing infrastructure, and adopting phased construction timelines could prevent such ballooning budgets in the future.

For Bhopal, the Metro remains a critical piece of urban transformation. But its rising cost reveals a wider truth about the economics of infrastructure in India: efficiency and execution speed are just as vital as ambition.

As the city prepares for the long-awaited completion of its first metro line, it carries both the promise of modern mobility and the burden of a price tag large enough to fund ten BRTS corridors, a striking symbol of the high cost of progress.

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