In a significant policy shift, the Odisha Cabinet has approved an expenditure of Rs 273.51 crore incurred on the Bhubaneswar Metro Rail project till December 31, 2025, while effectively restructuring the future of urban transport planning in the capital region. The move signals a transition away from the metro project in its current form towards a more sustainable and integrated mobility framework.
As part of the decision, the Cabinet has authorized the Inter-Ministerial Committee (IMC) to assess and recommend any future liabilities or expenditures related to the metro project to the Chief Minister for final decisions. Importantly, the government has also decided to terminate its agreement with the Delhi Metro Rail Corporation (DMRC), marking a formal halt to the earlier execution model.
Why the Metro Project Hit a Roadblock
The Cabinet’s decision is based on a detailed review by the IMC, which flagged multiple critical feasibility concerns. These include non-compliance with the National Metro Rail Policy (2017), low projected ridership, and traffic demand falling below required thresholds. Officials indicated that continuing the project in its current form would likely have resulted in recurring operational losses year after year, raising concerns over long-term financial sustainability
