BENGALURU: Bengaluru’s Metro network has fallen well short of the ridership levels projected in the Bangalore Metro Rail Corporation Limited’s (BMRCL) detailed project reports. Also, the revenue targets with actual farebox earnings reaching just 22.72% of projections, while land acquisition costs soared by Rs 6,603 crore, as per a performance audit by the Comptroller and Auditor General of India (CAG).
The findings are part of the “Report of the Comptroller and Auditor General of India on Implementation of Phase 1 and Phase 2 of Bangalore Metro Rail Project by Bangalore Metro Rail Corporation Limited”, Union Ministry of Housing and Urban Affairs, Report No. 7 of 2026 (Performance Audit – Commercial), which was tabled in Parliament on Monday.
The audit found that actual passenger demand remained substantially below the projections used to justify the investment in the heavy rail system. For Phase 1, peak-hour peak-direction traffic (PHPDT) in 2021 was between 6,429 and 8,852 passengers, significantly below the 15,000-passenger benchmark prescribed for proposing Heavy Metro on a continuous stretch of at least 5 km.
BMRCL had not achieved, even by 2023, the ridership and PHPDT levels originally projected for 2007. The CAG noted that no adequate study had been undertaken to determine how ridership could be improved.
The ridership shortfall translated into a major revenue gap. Between 2016-17 and 2022-23, BMRCL earned Rs 1,758.13 crore in farebox revenue against a projected Rs 7,736.70 crore, achieving just 22.72% of the target.
Non-fare revenue also fell short. Against DPR projections that envisaged non-fare income of at least 10% of farebox revenue, actual realisation ranged from 1.39% to 8.62% of projected farebox revenue.
Land acquisition costs rise by Rs 6,603 crore
The CAG flagged a Rs 6,603.39 crore increase in land acquisition costs as of March 2023, attributing it to improper estimation of land requirements in DPRs and delays in acquisition. Of this, Rs 835.81 crore is related to Phase 1 and Rs 5,767.58 crore to Phase 2.
BMRCL acquired 62.67 hectares for Phase 1 against a projected requirement of 45.24 hectares, while 145.16 hectares were acquired for Phase 2 against a projection of 165.09 hectares, including land earmarked for property development. Another 55 hectares intended for property development had not been acquired as of March 2023.
The audit noted that BMRCL incurred cash losses between 2013-14 and 2021-22, with its own revenues insufficient to meet external debt repayment obligations. As of March 2023, the corporation remained dependent on the state government to service project debt.
The CAG also said financial projections were based on overestimated ridership without sensitivity analysis for different demand scenarios or detailed studies into the causes of low ridership.
The audit further questioned the Metro’s ability to attract private vehicle users. BMTC’s daily footfall fell from 51.30 lakh in 2014-15 to 27.49 lakh in 2022-23. Even the combined ridership of BMTC and Metro remained below BMTC’s earlier standalone ridership.
Poor integration with BMTC, inadequate last-mile connectivity and insufficient parking were identified as key constraints, indicating that the Metro had not significantly shifted commuters from private vehicles to public transport.
The audit also flagged gaps in access and integration at Metro stations. Stations at Nagasandra, Peenya, Peenya Industrial Area, Jalahalli and Dasarahalli were constructed alongside National Highways without adequate Foot Over Bridges (FOBs) or underpasses for safe road crossings.
While crossings were later provided at some stations, FOBs at Peenya and Peenya Industrial Area were found infeasible due to vertical height clearances.
Overall findings in the CAG report
Fare revenue projected Rs 7,736.70 cr
Fare revenue actually earned Rs 1,758.13 cr
Fare revenue achieved 22.72%
Land acquisition cost escalation Rs 6,603.39 cr
Excess land compensation Rs 294.72 cr
Additional interest due to acquisition delays Rs 186.86 cr
Vacant Metro property 2.23 lakh sq ft
Potential lease revenue lost Rs 38.53 cr
Underground PSD savings potentially available Rs 6.58 cr/year
