As urban centres across India strive to modernise their transportation infrastructure, the introduction of metro systems in cities like Jaipur, Agra, and Lucknow has been heralded as a sign of progress and development.
However, a closer examination reveals a discrepancy between perceived prestige and actual profitability in these metro ventures. A comprehensive analysis conducted by a Parliamentary Standing Committee on housing and urban affairs in 2022 shed light on the financial challenges plaguing metro networks nationwide. The report highlighted that most metro systems are operating at a loss and struggle to attract sufficient ridership to sustain their operations. Despite these challenges, new metro projects continue to be initiated, with a significant portion—45%—of the ministry’s budget earmarked for metro development. Small cities do not need this but it is being forcefully brought there also. It only works where population density is very high and how much people travel in the city,” says Madhav Raman, architect and co-founder of Delhi-based Anagram Architects.
The case of Jaipur serves as a notable example of this phenomenon. According to a 2018 report by the Comptroller and Auditor General (CAG), the necessity for a metro railway in Jaipur was not projected until 2025. Despite this, the city proceeded with metro construction, raising questions about the rationale behind such decisions in the absence of immediate demand and financial feasibility. Similarly, metro projects in Agra and Lucknow face similar scrutiny regarding their profitability and ridership potential. While these projects undoubtedly enhance the urban landscape and contribute to a city’s modernisation narrative, the economic viability of such ventures remains a subject of debate.
One of the primary challenges facing metro systems in these cities is the insufficient ridership to cover operational costs and generate revenue. Without a robust passenger base, metro networks struggle to break even, let alone turn a profit. Additionally, the high capital investment required for metro construction further exacerbates financial pressures, particularly in cities with limited resources. Moving forward, stakeholders must critically assess the cost-benefit analysis of metro projects, considering factors such as projected ridership, revenue generation, and long-term sustainability. While metros undoubtedly enhance a city’s connectivity and prestige, their success hinges on prudent financial planning and strategic decision-making to ensure they remain viable and beneficial investments for urban development.
