Bhubaneswar: The Odisha Cabinet has approved expenditure of Rs 273.51 crore incurred on the Bhubaneswar Metro Rail Project till December 31, 2025, while taking key decisions to restructure the state’s urban mobility strategy.
The Cabinet also authorised the Inter-Ministerial Committee (IMC) to recommend future liabilities or expenditure related to the project to the chief minister for decision-making.
In a significant policy shift, the government decided to repurpose Bhubaneswar Metro Rail Corporation Limited (BMRCL) as the nodal agency to manage inter-departmental coordination for the ongoing Sustainable Urban Mobility Transition Plan in Odisha. The agency may also function as a Special Purpose Vehicle for future mobility projects in the state.
The Cabinet further approved the termination of the agreement with Delhi Metro Rail Corporation (DMRC).
The decisions follow recommendations by the IMC, which conducted a detailed review of the metro project. The committee flagged multiple feasibility concerns, including non-compliance with the National Metro Rail Policy 2017, below-threshold traffic demand, and low ridership projections. Officials noted that continuing the project in its present form could have led to recurring annual operational losses.
Looking ahead, the state will utilise technical assistance from the Asian Development Bank to prepare a Comprehensive Mobility Plan (CMP) for the Bhubaneswar–Cuttack–Puri–Paradeep Economic Region.
The CMP will focus on Transit-Oriented Development, multi-modal integration, and sustainable mobility solutions to ensure the long-term viability of urban transport systems.
Officials said the move aims to safeguard public resources while laying the groundwork for a future-ready, regionally integrated transport network aligned with Odisha’s vision of a developed state by 2036.
