Kolkata East-West Metro project faces cost escalation

The total estimated cost of the Kolkata East-West Metro project has escalated to Rs 89.97 billion from the earlier estimate of Rs 80 billion. The key reasons for this escalation include delays in land acquisition and getting clearances, route realignment and devaluation of the rupee versus foreign currencies, among others. The metro project was originally sanctioned at a cost of Rs 48.76 billion in July 2008. Currently, about 50 per cent of the work on the Sealdah-Sector V stretch (Phase I) and 6 per cent of the work on the Sealdah-Howrah Maidan stretch (Phase II) has been completed. Phase I is expected to be completed by June 2018 while it is likely that Phase II will be operational by August 2019.