Metro Contracts Terminated for Non-Compliance

The Odisha government has officially cancelled contracts awarded to Ceigall India Limited and the Delhi Metro Rail Corporation (DMRC) for the Bhubaneswar Metro Rail project, citing repeated delays and failure to honor contractual obligations, including payment commitments. The decision was taken on June 7, 2025, dealing a major setback to the state’s flagship urban transport initiative.

The terminated contract involved the design and construction of an elevated viaduct and six elevated metro stations: Nandan Vihar, Raghunathpur, Nandankanan Zoological Park, Barang, Phulapokhari, and Trisulia Square.

Foundation Laid by Naveen Patnaik; Now in Limbo

The Bhubaneswar Metro project was inaugurated with much fanfare by then Chief Minister Naveen Patnaik on January 1, 2024, with the aim of improving connectivity between Biju Patnaik International Airport and Trisulia Square. Spanning a 26-km corridor with 20 stations, the project had an estimated cost of Rs 6,255 crore.

However, slow execution and poor coordination have dogged progress. Allegations surfaced that Ceigall and DMRC were distracted by their involvement in the 2028 Games infrastructure, which impacted the quality and timeliness of work.

No Clarity Yet on Metro Alignment

A high-level sub-committee meeting chaired by Deputy Chief Minister Kanak Vardhan Singh Deo on July 16, 2025, discussed the status of the metro project. However, no decision was made regarding the mode of construction — whether the corridor will be elevated or underground — or the final route alignment.

The meeting largely focused on broader goals such as decongesting city traffic, urban mobility integration, and long-term infrastructure development for Bhubaneswar and Cuttack.

Ceigall Reacts, Seeks Compensation

Ceigall India Limited, one of the main contractors, confirmed the cancellation and announced it would seek damages and compensation as per the terms of the contract. Their Rs 898.99 crore agreement included critical components of the metro infrastructure, including stations and viaducts.

Social media reactions indicate widespread public disappointment. An X (formerly Twitter) post went viral with users claiming the project now feels “dead,” and fears that traffic congestion in Bhubaneswar and Cuttack will worsen.

State Promises Revised Plan, Center Awaits Proposal

Deputy Urban Development Minister Usha Devi said the state is working on a revised metro blueprint, which will be submitted to the Central Government for fresh budget approval. “A modern, time-bound metro plan is in progress. With central cooperation, we aim to deliver the metro system the state needs,” she said.

However, Union Minister Tokhan Sahu stated that as of July 24, 2025, the Centre had not received any formal proposal from the Odisha government, casting uncertainty over the immediate future of the project.

Future of Urban Mobility in the Balance

The termination of the Bhubaneswar Metro Rail contracts marks a significant disruption in Odisha’s urban mobility vision. Yet, the state’s commitment to redrawing the plan and reissuing tenders suggests that a rebooted, more efficient metro project could emerge.

Urban planning experts believe that with a well-drafted Detailed Project Report (DPR), clearer timelines, and stronger execution monitoring, Odisha still has a chance to meet its sustainable transportation goals in the coming years.

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