CAG flags cost overruns, low ridership and land acquisition issues in Bengaluru Metro Phase 1 and 2

Published 10 August 2026 · local

The implementation of Phase 1 and 2 of the Bengaluru Metro project by the Bangalore Metro Rail Corporation Limited (BMRCL) faced significant shortcomings in planning

The implementation of Phase 1 and 2 of the Bengaluru Metro project by the Bangalore Metro Rail Corporation Limited (BMRCL) faced significant shortcomings in planning, land acquisition, project execution, financial management and operations, according to a performance audit by the Comptroller and Auditor General of India (CAG). The CAG Performance Audit Report No. 7 of 2026, covering the implementation of Phase 1 and 2 of the Bengaluru Metro project, was tabled in Parliament on Monday (August 10). The audit examined planning, implementation, monitoring and operations of the two phases since their inception up to March 2021, while the physical and financial progress of selected contracts was reviewed up to March 2023. Phase 2A and 2B were excluded from the audit. BMRCL is a 50:50 joint venture between the Centre and the Karnataka government. Phase 1, covering 42.3 km, began commercial operations in phases from October 2011 and became fully operational in June 2017. Phase 2 operations began in stages between January 2021 and March 2023 over 27.36 km, with the remaining portion is planned for completion by December 2026. One of the major concerns raised by the CAG was the planning of Phase 2 without a Comprehensive Mobility Plan, Transit Oriented Development or Land Use Policy.

Low ridership The audit noted that the actual Peak Hour Peak Direction Traffic (PHPDT) achieved during Phase 1 in 2021 was substantially below projections, ranging between 6,429 and 8,852, against projected levels above 15,000. Despite the low ridership, no study was undertaken to establish how ridership could be improved to justify investment in a heavy metro system. The audit also questioned the ridership assumptions used for calculating the Financial Internal Rate of Return and Economic Internal Rate of Return for both phases. According to the report, the projected ridership could not be achieved and BMRCL had not conducted a detailed study into the reasons for the low ridership. The audit noted that feeder services were poorly organised and did not adequately connect Metro stations with interior residential areas. It also pointed to a decline in BMTC bus footfall from 51.3 lakh passengers per day in 2014-15 to 27.49 lakh in 2022-23, a year after the pandemic. Even the combined ridership of BMTC and Metro remained lower than BMTC’s earlier ridership, indicating that the Metro had not attracted enough private vehicle users to significantly increase overall public transport ridership in Bengaluru.