Chandigarh, January 29:
A report presented by Rail India Technical and Economic Service (RITES) on the proposed metro project in Chandigarh has revealed significant financial and economic challenges. According to the report, the financial and economic returns of the metro project are lower than expected, raising concerns about the future of this ambitious initiative.
The report indicates that Chandigarh’s Financial Internal Rate of Return (FIRR) is just 6.4%, which is relatively low compared to other cities. The figures for Kochi (5.88%), Ahmedabad (9.70%), and Jaipur (8.24%) were used for comparison, showing that Chandigarh lags behind. Similarly, the Economic Internal Rate of Return (EIRR) for Chandigarh stands at 14.92%, which is also lower than Kochi (15.94%), Ahmedabad (19.94%), and Jaipur (18.6%).
RITES has requested further detailed data on other cities’ metro projects, including passenger numbers, revenue, and operational statistics. It was decided in the meeting that another session will be held on February 18 to present the additional information requested.
Administrator Gulabchand Kataria had previously raised concerns regarding the viability of the metro project, questioning passenger numbers and potential expenses. He had ordered a comparative report, which led to the formation of an expert committee that includes senior officials from Chandigarh, Punjab, and Haryana. The committee is also exploring alternative solutions, such as measures to reduce traffic congestion in the city, should the metro project not be feasible.
Recently, Union Minister Manohar Lal suggested the introduction of pod taxis in Chandigarh as an alternative mode of transport.
FIRR and EIRR Overview:
- FIRR: A financial indicator that measures the returns on investments in a project, used to make investment decisions.
- EIRR: Used to assess the economic, financial, social, and environmental benefits of a project.
FIRR:
- Chandigarh: 6.4%
- Kochi: 5.88%
- Ahmedabad: 9.70%
- Jaipur: 8.24%
EIRR:
- Chandigarh: 14.92%
- Kochi: 15.94%
- Ahmedabad: 19.94%
- Jaipur: 18.6%
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