The Haryana Cabinet on Monday approved a sharp increase in the cost of the Gurugram Metro Rail project, with the outlay rising from Rs 5,452.72 crore to Rs 10,266.54 crore due to price escalation, revised infrastructure needs and corridor expansion.
The decision was taken at a Cabinet meeting chaired by Chief Minister Nayab Singh Saini in Chandigarh.
The revised approval covers the 28.50-km metro corridor from Millennium City Centre to Cyber City in Gurugram, along with supplementary reports on Rapid Metro integration, a new spur to Gurugram Railway Station, and funding of the entire soft loan component through the World Bank.
Officials said the revised cost reflects several changes since the original Detailed Project Report (DPR) was approved in 2020.
The DPR, prepared by RITES, was cleared by the Haryana Council of Ministers on August 13, 2020, and later approved by the Centre. The corridor will have 27 stations.
According to the Cabinet note, the cost increase is due to price escalation between 2019 and 2023, revised GST rates, standalone planning for the Millennium City Centre–Cyber City corridor, a full-fledged depot and additional rolling stock, changes in the RRTS alignment, and the addition of a metro spur to Gurugram Railway Station.
The revised cost includes Rs 7,098.70 crore towards escalation and GST revisions, Rs 947.06 crore for standalone corridor requirements, and Rs 454.32 crore for the proposed metro spur linking Sector-5 with Gurugram Railway Station.
The Cabinet also approved a supplementary report on integration with Rapid Metro. Officials said the Gurugram Metro will now operate as a standalone project after changes in the integration model. The plan includes a depot and related infrastructure on 22.86 hectares of government land in Sector-33, Gurugram.
Another supplementary report relates to the proposed 1.80-km metro spur connecting Sector-5 station with Gurugram Railway Station to improve rail-metro connectivity.
In a key funding decision, the Cabinet approved financing the project’s entire soft loan component through the World Bank.
The original sanctioned cost of Rs 5,452.72 crore included a soft loan of Rs 2,688.57 crore, with Rs 1,075.42 crore proposed from the World Bank and Rs 1,613.14 crore from the European Investment Bank (EIB).
However, officials informed the Cabinet that confirmation from the EIB was still pending. Gurugram Metro Rail Limited (GMRL), during its Board meeting on October 13, 2025, decided that if delays continued, the EIB-funded portion should also be routed through the World Bank to avoid any impact on timelines.The proposal was later approved by Chief Minister Nayab Singh Saini on December 12, 2025.
