In a significant policy shift, the Odisha State Cabinet has approved the retrospective expenditure of Rs 273.51 crore incurred on the Bhubaneswar Metro Rail Project till December 31, 2025, while deciding to terminate its agreement with the Delhi Metro Rail Corporation (DMRC).
The cabinet also authorised an Inter-Ministerial Committee (IMC) to recommend any future liabilities or expenditures related to the project directly to the Chief Minister for final decisions.
The move comes after a detailed review by the IMC, which highlighted major feasibility concerns: non-compliance with the National Metro Rail Policy 2017, traffic demand falling below required thresholds, and low projected ridership that risked substantial annual operating losses if the project continued in its current form.
As part of the decision, the government is repurposing the Bhubaneswar Metro Rail Corporation Limited (BMRCL) to serve as the nodal agency for inter-departmental coordination under the ongoing Sustainable Urban Mobility Transition Plan for Odisha. BMRCL may also function as a Special Purpose Vehicle (SPV) for future mobility initiatives across the state.
Looking forward, the state will utilise technical assistance from the Asian Development Bank (ADB) to prepare a Comprehensive Mobility Plan (CMP) for the Bhubaneswar-Cuttack-Puri-Paradeep Economic Region (BCPPER). The CMP will prioritise Transit-Oriented Development (TOD), Multi-Modal Integration (MMI), and inclusive, sustainable mobility solutions to ensure long-term viability and efficiency.
The decision comes as a prudent step to safeguard public resources while paving the way for a more integrated, future-ready public transport system aligned with Odisha’s vision of Vikshit Odisha by 2036.
This development marks a strategic pivot from a standalone metro rail project to a broader, regionally integrated sustainable urban mobility framework for the capital region.
