Bhubaneswar: The Odisha Cabinet has decided to put the Bhubaneswar Metro Rail Project on hold in its existing form, following recommendations from an Inter-Ministerial Committee (IMC).
“The decision follows the recommendations of the Inter-Ministerial Committee, which, after a detailed review, identified key feasibility challenges including non-compliance with the National Metro Rail Policy(2017), below-threshold traffic demand, and low ridership projections. Continuing the project in its present form would have risked recurring annual operating losses.”
Simultaneously, Rs 273.51 crore spent on the project until December 31, 2025, was regularised. It has also terminated the agreement with the Delhi Metro Rail Corporation (DMRC), which had served as the turnkey consultant.
Repurposing BMRCL and Shifting Focus
The Bhubaneswar Metro Rail Corporation Ltd (BMRCL) will now be repurposed as a nodal agency to coordinate efforts under the state’s Sustainable Urban Mobility Transition Plan. It may late
r function as a special purpose vehicle (SPV) for other urban mobility initiatives. “The government is repurposing the role of BMRCL to act as the nodal agency to manage inter-departmental coordination for the ongoing ‘Sustainable Urban Mobility Transition Plan in Odisha and same may also be utilised as Special Purpose Vehicle (SPV) for future mobility projects in the state,”
This shift aligns with a broader emphasis on integrated, sustainable transport solutions rather than a standalone metro system that may not meet viability thresholds.
Seeking External Support
The Odisha government plans to seek ‘technical assistance’ from the Asian Development Bank (ADB) to prepare a Comprehensive Mobility Plan (CMP) for the Bhubaneswar-Cuttack-Puri-Paradip Economic Region. This plan will assess overall urban transport needs and determine the appropriate role for a metro rail component within a multi-modal framework. “The CMP will emphasise Transit-Oriented Development (TOD), Multi-Modal Integration (MMI) and inclusive, sustainable mobility solutions to ensure long-term viability. This prudent step safeguards public resources while laying the foundation for a future-ready, regionally integrated public transport system that aligns with Odisha’s vision of Vikshit Odisha by 2036.”
A final decision on any future metro rail development will follow the IMC’s detailed evaluation and the findings of the CMP.