Infrastructure · Cost Revision · 2026

    Old Gurugram's metro just got88% more expensive. Here's why.

    On May 18, 2026, the Haryana Cabinet approved a revised cost of ₹10,266.54 crore for the Millennium City Centre–Cyber City metro, nearly double the ₹5,452.72 crore sanctioned back in 2023. Pillars are visibly rising through Old Gurugram. But the numbers behind the headlines tell a more complicated story.

    Rashmi
    By Rashmi
    Real Estate Advisor, Gurugram · September 2026 · 7 min read
    ₹10,266.54 Cr
    Revised project cost, approved May 18, 2026
    Haryana Cabinet, via Indian Express
    ₹5,452.72 Cr
    Original 2023 sanctioned cost
    Union Cabinet approval, June 2023
    11%
    Phase 1 physical progress as of July 2026
    GMRL official, Hindustan Times
    27
    Stations across the 28.5 km elevated loop
    GMRL project scope

    What the Haryana Cabinet actually approved.

    The Millennium City Centre–Cyber City metro, Old Gurugram's first-ever rail line, was sanctioned by the Union Cabinet in June 2023 at ₹5,452.72 crore. On May 18, 2026, the Haryana Cabinet cleared a revised estimate of ₹10,266.54 crore for the same corridor. That's a jump of nearly 88%, not a rounding error.

    The revised cost breaks into three pieces, per the Cabinet's own numbers: ₹7,098.70 crore toward price escalation and GST revision, ₹947.06 crore for additional standalone corridor requirements, and ₹454.32 crore to build the metro spur from Sector-5 to Gurugram Railway Station.

    That last piece is worth pausing on. Earlier in 2026, the Sector-5–Railway Station spur had been carved out as a separate, standalone project on the World Bank's advice, so it wouldn't hold up the main corridor. It's now been folded back into the main project's revised cost, which is part of why the total moved so much.

    Context

    Cost overruns on Indian metro projects are the rule, not the exception.

    Three years passed between the 2023 Cabinet sanction and actual pillar-casting work starting in December 2025. In that gap, construction material costs, labour rates, and GST treatment all moved. Add back a spur that was temporarily hived off, and an 88% cost increase is less a scandal than a familiar pattern on large Indian infrastructure projects. What matters more for a buyer is not the headline number, it's whether the funding is actually in place to finish the job. On that front, the picture is mixed: Phase 1 has a signed contractor and visible sitework, while a large piece of Phase 2 funding still needs sign-off.

    Where the work actually stands

    11% built on Phase 1. 3.3% built overall. Pillars are real, completion isn't close.

    A GMRL official told Hindustan Times in July 2026 that Phase 1, the 15.2 km stretch from Millennium City Centre to Sector 9, had reached 11% physical progress; the project overall, including the yet-to-start Phase 2, stood at 3.3%. The first pile was cast in Sector 45 in February 2026, with actual pillar-casting work beginning December 27, 2025, roughly three months after a September 2025 groundbreaking.

    The Phase 1 civil contract, covering 14 elevated stations, a 13.2 km viaduct, the spur to Dwarka Expressway, and the ramp to the Sector 33 depot, went to a Dilip Buildcon–RBL joint venture at ₹1,503.63 crore. Bids for the Sector 33 depot itself opened August 5, 2026. Meanwhile, the roughly ₹1,400 crore civil package covering Phase 2, from Sector 9 to Cyber Hub via Palam Vihar and Udyog Vihar, is still waiting on World Bank approval before it can be tendered.

    Phase 1 is the real, funded piece

    A signed contractor, a working depot tender, and over 900 pillar foundations underway between Millennium City Centre and Sector 9. This is the part of the project you can actually watch getting built.

    Phase 2 is still a funding question

    The Sector 9–Cyber Hub leg, which closes the loop into New Gurugram, needs World Bank sign-off before tendering even starts. Until that clears, the "full loop" timeline is a plan, not a schedule.

    2023 sanction vs. 2026 reality.

    Side by side, the picture is less alarming than "cost nearly doubled" sounds on its own.

    Metric2023 Sanction
    Sanctioned cost₹5,452.72 Cr (Union Cabinet, June 2023)
    Scope28.5 km loop, 27 stations, Dwarka Expressway spur
    Phase 1 statusApproved, not yet tendered
    Phase 2 statusPart of the same approval
    Target completionNot publicly firmed up

    Sources: The Indian Express (May 18, 2026 Cabinet approval), Hindustan Times (July 22, 2026 progress report), GMRL project pages.

    Should this change how you look at Old Gurugram? An honest answer.

    Not on the cost revision alone. But it's a useful reality check if you're banking on this metro to move prices soon.

    Why this is still encouraging
    • Old Gurugram, sectors 4, 5, 7, 9, 10, 37, plus Ashok Vihar and Palam Vihar, has never had rail access. This is a genuine first, not an upgrade
    • Phase 1 has a signed contractor, a working depot tender, and pillars physically rising, real spend, not just a press release
    • The line interchanges with the Delhi Metro Yellow Line at Millennium City Centre and the Rapid Metro at Cyber City, so it isn't an isolated stub
    • A cost revision that adds a previously-separated spur back in is a scope increase, not evidence the project is in trouble
    Why you shouldn't overreact
    • 11% done on Phase 1, 3.3% overall, three years after the original sanction. Mid-2027 is the best case, not the base case
    • Phase 2, the half that actually reaches Cyber City and New Gurugram, still needs World Bank approval before tendering starts
    • A cost overrun this early raises the odds of another one before the line opens. Budget for slippage, not the announced date
    • Don't pay a station-proximity premium today for a platform that's years from carrying its first passenger
    Rashmi
    Rashmi's take

    A cost jump headline sounds worse than the underlying project is.

    When "cost nearly doubles" hits the news, my clients in Sector 9 and Palam Vihar immediately ask if the project is in trouble. Usually it isn't. Most of this increase is price escalation over a three-year gap plus a spur that got folded back in. That's bookkeeping, not a red flag.

    What I actually watch is boring: is there a signed contractor, is there sitework you can drive past, and is the funding for the next phase actually approved, not just proposed. Phase 1 clears that bar. Phase 2 doesn't yet. That's the honest gap between "this is happening" and "this is finished."

    If you're evaluating a resale flat or a builder floor in Old Gurugram on the strength of this metro, I'll walk you through exactly which sectors have funded, contracted work nearby versus which ones are still betting on Phase 2 clearing its funding review.

    Frequently asked questions.

    Why did the Gurugram Metro's cost nearly double?
    The Haryana Cabinet's May 18, 2026 revision breaks the increase into three parts: ₹7,098.70 crore for price escalation and GST revision, ₹947.06 crore for additional standalone corridor requirements, and ₹454.32 crore to build the Sector-5–Railway Station spur, which had briefly been split into a separate project before being folded back in.
    How much of the Gurugram Metro is actually built?
    As of July 2026, a GMRL official put Phase 1 (Millennium City Centre to Sector 9) at 11% physical progress, with the project overall at 3.3% including the not-yet-started Phase 2. Pillar-casting work began in December 2025, with the first pile cast in February 2026.
    When will the Gurugram Metro open?
    Phase 1's working target is mid-2027, treated as a best case rather than a guarantee. The full 28.5 km loop to Cyber City, which depends on Phase 2 funding approval, is targeted for 2028–29. Large Indian metro projects routinely slip past their first announced dates.
    Who is building the Gurugram Metro's first phase?
    A Dilip Buildcon–RBL joint venture holds the ₹1,503.63 crore Phase 1 civil contract, covering 14 elevated stations, a 13.2 km viaduct, the spur to Dwarka Expressway, and the ramp to the Sector 33 depot. Bids for the depot itself opened August 5, 2026.
    Which Gurugram sectors benefit most from this metro?
    Old Gurugram sectors that have never had rail access, including 4, 5, 7, 9, 10 and 37, along with Ashok Vihar, Palam Vihar and Udyog Vihar. The line also carries a spur to Dwarka Expressway and interchanges with the Delhi Metro Yellow Line and the Rapid Metro at Cyber City.
    Explore further

    Evaluating a property near the Old Gurugram Metro corridor?Get the honest read first.

    Share your budget and timeline. Rashmi will separate what's actually funded and under construction from what's still a plan on paper.