BHUBANESWAR: Driving the final nail into the capital city metro project coffin, the state cabinet chaired by Chief Minister Mohan Charan Majhi on Saturday night decided to scrap the agreement with Delhi Metro Rail Corporation (DMRC) and repurpose Bhubaneswar Metro Rail Corporation Limited (BMRCL) as a nodal agency for sustainable urban mobility projects in the state.
The cabinet decision followed recommendations of the inter-ministerial committee, which identified key feasibility challenges including non-compliance with the National Metro Rail Policy - 2017, below-threshold traffic demand and low ridership projections for the project. Continuing the project in its present form would have risked recurring annual operating losses, the cabinet contended and announced to terminate the agreement with DMRC, engaged as the turnkey consultant for execution of the project.
“This prudent step safeguards public resources while laying the foundation for a future-ready, regionally-integrated public transport system that aligns with the state’s vision of Viksit Odisha by 2036,” said chief secretary Anu Garg.
The cabinet, however, approved an expenditure of Rs 273.51 crore incurred on the Bhubaneswar Metro Rail project up to December 31, 2025, while authorising the inter-ministerial panel to examine and recommend any future liabilities or expenditure related to the metro project to the chief minister for further decision.
It also decided to repurpose Bhubaneswar Metro Rail Corporation Limited (BMRCL) into a nodal agency for coordinating inter-departmental efforts under a broader ‘Sustainable Urban Mobility Transition Plan’ and serve as a Special Purpose Vehicle for future mobility initiatives in the state.
Looking ahead, authorities said the Odisha government plans to develop a Comprehensive Mobility Plan (CMP) for the Bhubaneswar-Cuttack-Puri-Paradip Economic Region (BCPPER) with technical assistance from the Asian Development Bank. It will focus on transit-oriented development, multi-modal integration and sustainable, inclusive transport solutions to create a financially viable and future-ready public transport system.
The Phase-I of the metro project had earlier been planned for a 26-km stretch between Biju Patnaik International Airport (BPIA) in Bhubaneswar and Trisulia in Cuttack, with an investment of Rs 6,225 crore. The Opposition Biju Janata Dal (BJD) and Congress have, meanwhile, launched a scathing attack on the government.
BJD MLA from Bhubaneswar-Central Ananta Narayan Jena said the decision to put metro project on hold will not only aggravate traffic problems in the city but also hamper the development and future investment prospects of the state capital. Congress MLA Tara Prasad Bahinipati also accused the government of wasting public funds and depriving people of the benefits of rapid transit system in the capital city.