New Delhi, Aug 10 (PTI) The Comptroller and Auditor General of India (CAG) has flagged deficiencies in the planning, land acquisition, project execution, financial management and operations of the Bangalore Metro Rail Project, including overestimation of ridership and substantial excess expenditure on land acquisition.
The Performance Audit Report No. 7 of 2026 on implementation of Phase 1 and Phase 2 of the project by Bangalore Metro Rail Corporation Limited (BMRCL) was presented in Parliament on Monday.
BMRCL is a 50:50 joint venture of the Centre and the Karnataka government.
Commercial operations of Phase 1 commenced in a phased manner from October 2011 and became fully operational in June 2017 over 42.30 kilometres.
Phase 2 operations commenced partly between January 2021 and March 2023 over 27.36 km, with the balance planned for completion by December 2026.
The audit covered planning, implementation, monitoring and operations of Phases 1 and 2, excluding Phases 2A and 2B, since inception up to March 2021. The physical and financial progress of selected contracts was reviewed up to March 2023.
The CAG audit reported stated that Phase 2 DPRs were prepared without a comprehensive mobility plan, transit oriented development or land use policy.
It also noted that the actual Peak Hour Peak Direction Traffic (PHPDT) for Phase 1 in 2021 was far below projections, ranging from 6,429 to 8,852, while there was no study to show how ridership could be improved to justify investment in heavy metro.
The audit also found that ridership figures used for calculating Financial Internal Rate of Return and Economic Internal Rate of Return appeared to have been overestimated, while no detailed study was undertaken to ascertain reasons for low ridership.
On land management, BMRCL acquired 62.67 hectares against 45.24 hectares projected for Phase 1, while for Phase 2 it acquired 145.16 hectares against 165.09 hectares projected. Improper land estimation and delays in acquisition resulted in an increase of Rs 6,603.39 crore in land acquisition cost.
The report also stated that BMRCL adopted either non-agriculture land rates for agriculture land or added certain attributes to agriculture lands which were applicable to converted land. This resulted in excess payment of land compensation to landowners to the extent of Rs 294.72 crore.
BMRCL paid additional compensation of Rs 186.86 crore as interest at 12 per cent, due to delay in issue of final notification for land acquisition beyond prescribed period of 270 days. BMRCL did not have a procurement manual, while taxes included in estimates of nine civil contracts increased project cost by Rs 1,222.40 crore.
The CAG further noted that BMRCL remained completely dependent on the Karnataka government to service project debt due to insufficient revenue and continuous cash losses.
During 2016-17 to 2022-23, actual farebox revenue was Rs 1,758.13 crore against projected revenue of Rs 7,736.70 crore.
The audit attributed low ridership to factors including non-integration with BMTC, inadequate last-mile connectivity and insufficient parking.
It also noted that 2.23 lakh sq ft of 2.46 lakh sq ft built-up area developed at metro stations for property development remained vacant, resulting in loss of an estimated Rs 38.53 crore in lease-rent revenue during 2019-22. PTI BUN MDO MDO
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