The cost of the underground Mumbai Metro 3 project has escalated by over Rs 10,000 crore to Rs 33,406 crore from the original estimate of Rs 23,136 crore in 2016. When tenders were invited in 2016, the cost was based on the 2011 estimate.

The escalation proposal was submitted to the state finance department by the Mumbai Metro Rail Corporation (MMRC), which is implementing the 33.5 km rail link between Cuffe Parade and Seepz, in February 2021. The finance department is yet to clear it.

The Japan International Cooperation Agency (JICA), which is funding almost 60 percent of the total project cost, has not released funds for Metro 3 since 2020. The agency is waiting for the cost escalation approvals by the state and the Centre.

The land acquisition cost for Metro 3 also drastically increased once the project commenced. The original estimate for land acquisition was fixed at Rs 590 crore, which has now increased to Rs 1,483 crore.

The largest cost escalation component is for construction of the tunnel, stations and car depot. It was initially pegged at Rs 10,708 crore, but the revised cost estimate is Rs 18,711 crore.

Early in 2021, a nine-member government panel stated that an integrated Metro depot at Kanjurmarg will save the government Rs 1,580 crore against land and construction costs. The committee appointed by the state government said the Metro 3 car shed at Aarey can accommodate only 30 rakes, while the Kanjurmarg one is large enough to hold 55.

The panel report also concluded that the 41 ha Kanjurmarg plot is big enough to be an integrated depot for three Metro lines: 3, 4 and 6.

The report also mentions that if the integrated depot is planned at Kanjurmarg, an interchange station of Line 14 and Line 6 can be proposed at Kanjurmarg, facilitating better interchange between Lines 3, 6 and 14.