CAG flags poor ridership, Rs 6,603 crore rise in Bengaluru Metro land costs

Audit flags Metro's financial health

The Comptroller and Auditor General (CAG) has trained its lens on Bengaluru Metro's operational and financial performance, pointing to persistently low ridership and a sharp escalation in land acquisition expenses. The audit, whose findings were made public on Tuesday, notes that land costs for the project ballooned by Rs 6,603 crore, a significant overrun that has added to the project's mounting financial burden.

The CAG report, tabled in the Karnataka assembly, comes at a time when the city's Metro network is expanding across new corridors. The findings are likely to reignite debates over the pace of urban transit expansion and the cost of acquiring land in India's tech capital.

Ridership below projections

The audit points out that actual ridership on the Bengaluru Metro has consistently fallen short of the numbers projected in the detailed project reports (DPRs). The gap between expected and actual passenger numbers raises questions about the accuracy of demand forecasting and the viability of future expansions.

Lower-than-expected ridership directly impacts revenue generation, making it harder for the Bangalore Metro Rail Corporation Limited (BMRCL) to service its debt and meet operational costs. The CAG has recommended a review of the assumptions used in traffic studies before sanctioning new lines.

Land acquisition costs spiral

One of the most striking findings in the report is the Rs 6,603 crore increase in land acquisition costs. The escalation is attributed to delays in acquisition, rising compensation payouts, and changes in project scope — factors that have pushed up the overall project cost significantly.

For a city where land prices are among the highest in the country, the cost overrun adds a new layer of financial stress. The CAG has urged the state government and BMRCL to streamline land acquisition processes and adopt stricter cost-control mechanisms.

What the report means for commuters

For the average Bengaluru commuter, the audit's findings could translate into higher fares or delays in new line openings, as the Metro corporation scrambles to bridge revenue gaps. The state government, which has already committed substantial funds to the project, may need to revisit its subsidy and pricing policies.

Officials have not yet responded in detail to the CAG's observations, but sources indicate that BMRCL is preparing a rebuttal. The corporation has previously argued that ridership is expected to grow as the network becomes more integrated and last-mile connectivity improves.

Looking ahead

The CAG report is likely to be scrutinised by the state legislature's public accounts committee, which could summon officials for clarifications. In the meantime, the focus shifts to whether the government will act on the audit's recommendations or defend its current approach.

As Bengaluru waits for the full rollout of its Metro phases, the CAG's findings serve as a reminder that infrastructure growth must be matched with realistic planning and fiscal discipline. How the state responds will determine the future of urban mobility in one of India's fastest-growing cities.