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Reading: Costs soar by Rs 30,000 crore even before construction begins
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Costs soar by Rs 30,000 crore even before construction begins

THE NEWS NOW
Last updated: March 13, 2025 7:54 am
THE NEWS NOW
Published: March 13, 2025
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Ladakh rail project

Five new railway surveys underway in J&K; Sgr-Kargil-Leh rail plan stalled over high costs, low demand

Arteev Sharma

Jammu: The much-ambitious 489-km-long Bilaspur-Manali-Leh new rail line project, being designed to connect Ladakh–the country’s cold desert Ladakh with the rest of India, has faced a cost overrun of over Rs 30,000 crore at the Detailed Project Report (DPR) stage, hinting at major financial challenges ahead for its completion.

The Union Minister for Railways Ashwini Vaishnaw, while responding to a query in Lok Sabha with regard to rail project by the Member of Parliament from Ladakh Mohmad Haneefa Jan, informed that “Bilaspur–Manali–Leh New Line falling partly in UT of Ladakh is identified as strategic line by Ministry of Defence. Survey of Bilaspur-Manali-Leh new line project has been completed and Detailed Project Report has been prepared. Anticipated cost of the project as per Detailed Project Report is Rs 1, 31,000 crore”.

Interestingly, the project’s cost has surged by Rs 30,800 crore, rising from Rs 99,201.40 crore in July 2023 to Rs 1.31 lakh crore in 2025—an alarming increase even before construction has begun.

On July 26, 2023, Vaishnaw had informed the Lok Sabha that the DPR of the Bilaspur-Manali-Leh new railway track was prepared and the project was expected to be completed with an estimated cost of Rs 99,201.40 crore.

“The alignment of new line Bilaspur-Manali-Leh (489 km) line starts – off from Beri, passes through major towns of Sundernagar, Mandi, Manali, Sissu, Darcha Keylong, Sarchu, Pang, Rumtse, Upshi, Kharu and terminates at Leh Terminus, connecting important towns of Himachal Pradesh and Ladakh,” he had said.

Pertinently, the mega project comprises 40 stations, 62 tunnels, and 206 bridges. Out of the projected 489-km-long rail line, nearly 270-km will be covered through tunnels and the entire project covers a land area of 2557.96 hectares. There will be two important bridges on the proposed track. Out of total bridges, 114 bridges will be major bridges and 90 minor bridges. At 37 places, there will be road over bridge while 54 locations will have road under bridge.

The Union Minister further revealed, “Survey of Srinagar-Kargil-Leh (480 km) new rail line was carried out in 2016-17. As per Survey report the anticipated cost of the project was Rs 55,896 crores. However, due to low traffic projections, the project could not be taken forward”.

The Ladakh MP sought to know whether the government has any plan to conduct a survey very shortly for connecting Ganderbal in Kashmir with Kargil, keeping in view that Kargil district of Ladakh UT is strategically located from defence point of view and there is an urgent need to connect it with the rest of the country.

The Minister said the railway projects are planned and executed based on factors such as traffic projections, operational requirements and overall funding availability rather than on a district or Union Territory basis.

Meanwhile, he also confirmed that five new railway surveys, all in Kashmir Valley, were underway in Jammu and Kashmir.

Replying to another question by Member of Parliament from Rajouri-Anantnag seat, Mian Altaf Ahmad, the union minister said that railway projects are sanctioned and executed based on feasibility, traffic projections and financial viability, rather than on a district or state-wise basis.

“Railway projects are approved based on factors such as last-mile connectivity, missing links, socio-economic benefits and availability of funds. Challenges such as land acquisition, forest clearances, climate conditions, and law and order situations affect the timeline of railway projects in the region,” he said.

The minister said that a survey for a new railway line between Jammu and Poonch via Akhnoor and Rajouri (223 km) had been conducted, and the estimated cost of the project stood at Rs 22,771 crore. However, due to low traffic projections, the project could not move forward, he added.

He, however, said, five new railway surveys have been undertaken in Jammu and Kashmir which include Baramulla-Uri New Line (46 km), Sopore-Kupwara New Line (37 km), Anantnag-Pahalgam New Line (78 km), Avantipore-Shopian New Line (28 km), Banihal-Baramulla and Doubling (118 km).

The Union Minister said, “The work on a new railway line in Jammu & Kashmir under the Udhampur-Srinagar-Baramulla Rail Link (USBRL) project of total length 272-km has already been completed. The USBRL project covers the districts of Udhampur, Reasi, Ramban, Srinagar, Anantnag, Pulwama, Budgam and Baramulla in Jammu & Kashmir.

 

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