The Haryana cabinet on Monday approved a significant revision in the project cost for the Gurgaon metro corridor, increasing it to ₹8,500 crore. This marks a nearly 56% surge from the initial estimate of ₹5,453 crore for the 28.5-kilometer Millennium City Centre-Cyber City corridor, which will feature 27 stations. The decision was taken during a meeting chaired by Chief Minister Nayab Singh Saini.
Reasons for Cost Escalation
A senior official from the Gurgaon Metro Rail Limited (GMRL) explained that the primary drivers behind the cost revision are price escalation and GST revisions. The original estimates were based on 2019 rates, which have now been updated to 2023 rates. Additionally, the planned integration with the Rapid Metro could not materialize, necessitating independent infrastructure such as a separate depot and related systems. A new spur line connecting the metro corridor to Gurgaon railway station has also been included in the revised plan.
Other factors contributing to the cost increase include additional infrastructure requirements for operating the corridor independently, development of a full-fledged depot, procurement of additional rolling stock, and changes in the RRTS alignment.
Breakdown of Revised Estimate
Of the revised ₹8,500 crore estimate, ₹7,098 crore is attributed to escalation and GST revisions, ₹947 crore for independent corridor requirements, and ₹454 crore for the proposed metro spur between Sector 5 and Gurgaon railway station.
The cabinet also authorized the administrative secretary of the town and country planning department, Haryana, to act as the nodal officer for signing agreements and related documents necessary for the project's implementation.
Financing Through World Bank
In another key decision, the cabinet approved a proposal to finance the project's entire soft loan component through the World Bank. Under the original project cost, the soft loan component stood at over ₹2,688 crore, of which ₹1,075 crore was proposed through the World Bank and ₹1,613 crore through the European Investment Bank (EIB). However, repeated delays in receiving confirmation from the EIB prompted the GMRL's board in October 2025 to recommend that the EIB-funded portion also be financed through the World Bank to avoid delays. The proposal subsequently received the chief minister's approval in December 2025.
Integration with Rapid Metro
The cabinet also approved a supplementary report related to integration with the Rapid Metro. The report outlines the cost implications of developing the Gurgaon Metro as an independent project following changes in the integration scenario. It includes provisions for developing a depot and associated facilities over 22.86 hectares of government land in Sector 33.
Originally, the detailed project report (DPR) planned integration with the Rapid Metro using its existing infrastructure, including its depot and rolling stock. However, this was found to be technically not feasible due to the difference in coach widths: the Rapid Metro coach is 2.8 meters wide, while the metro coach is 2.9 meters wide.
Spur Line to Gurgaon Railway Station
Another supplementary report for the proposed 1.8-kilometer metro spur from Sector 5 station to Gurgaon railway station was sanctioned by the cabinet. The link aims to improve multimodal connectivity and enable seamless interchange between metro and railway services in the city.
Earlier, the World Bank advised that the railway station spur be processed separately as it was not part of the original sanctioned plan, and including it in the current project could delay approval for the Millennium City Centre-Cyber City corridor. However, the GMRL is proceeding with the additional spur line. “We are going ahead with the railway station spur line and will soon submit the proposal to the Centre for approval. The directions have already been issued from the Public Investment Board for the same. Whether it will be constructed under phase-2 of the metro project or a separate tender will be called, it will be decided soon,” the senior GMRL official said.
The DPR for the corridor was prepared by RITES, which received approval from the Haryana cabinet in August 2020, followed by clearance from the Centre in June 2023.
