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HomeLatestMumbai Metro 3 Cost Overruns Due to Delays

Mumbai Metro 3 Cost Overruns Due to Delays

Delays in the rehabilitation process for tenants displaced by the Mumbai Metro 3 project have led to a substantial increase in project costs, according to a recent Right to Information (RTI) response obtained by activist Jeetendra Ghadge.

Originally slated for completion by 2024, the rehabilitation programme is now projected to be delayed by at least one year, exacerbating financial pressures on the Mumbai Metro Rail Corporation Limited (MMRCL) and the city’s taxpayers. The MMRCL had initially aimed to finish the construction of rehabilitation buildings for 576 Project Affected Persons (PAPs) from Girgaon and Kalbadevi across three high-rise residential structures. However, revised timelines indicate that only one of these buildings will be ready by July 9, 2025. The completion date for the second building has been pushed to November 26, 2026, while the timeline for the third building remains uncertain due to ongoing tendering and construction delays.

These setbacks have forced MMRCL to continue paying transit rent to the displaced tenants, resulting in a dramatic increase in costs. RTI data reveals that transit rent payments surged from Rs 2.38 crore in the 2017-18 financial year to an alarming Rs 46.39 crore in 2023-24, marking a staggering 1,800% rise. This increase highlights the escalating financial burden on MMRCL and the broader impact on public funds.

Social activist, representing The Young Whistleblowers Foundation, has voiced strong concerns about the ongoing delays. Ghadge emphasised that the prolonged setbacks are placing an undue strain on both the affected tenants and taxpayers. “It has been seven years since the PAP tenants vacated their homes. The current trajectory suggests further delays, and the MMRCL must streamline its processes to avoid further financial strain,” he said.

The RTI revelations not only underscore the immediate financial implications of the delays but also reflect broader issues in project management and accountability. As the Metro 3 project continues to face setbacks, the effectiveness of large-scale urban infrastructure projects and their management come under increasing scrutiny, raising concerns about the allocation and utilisation of public resources.

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