Performance Audit Report No. 12 of 2025: Construction and Operation of Lucknow Metro Rail Project

What did the audit examine?

The audit examined the construction and operation of the Lucknow Metro Rail Project (Phase-1A) by the Uttar Pradesh Metro Rail Corporation Limited (UPMRCL), covering the period from November 2013 to March 2023.

Who / what it concerns

Uttar Pradesh Metro Rail Corporation Limited (UPMRCL), a joint venture of the Government of India and Government of Uttar Pradesh with 50:50 equity contribution.

What the auditor found

• Exclusion of Alternative Analysis in DPR as required by Ministry of Urban Development guidelines
• Exclusion of Mahanagar Metro Station without competent authority approval
• Non-compliance with conditions of in-principle approval from GoI (periodic fare revision, District Urban Transport Fund, advertising/parking policy)
• No NOC obtained for groundwater extraction from CGWA/GWD
• Exclusion of technically qualified bidder (Gammon India Limited) from financial bid
• Irregular payment of plant and machinery advance
• Irregular payment for material at site
• Loss of ₹3.16 crore due to non-collection of royalty on minerals
• Construction of depot on disputed land (1.98 hectares, 7.67%) without proper legal agreement
• Non-collection of license fee for 12 train sets
• Non-compliance with noise level standards
• Non-renewal of Interim Speed Certificate after 5 years (expired March 2017)

Points worth noting

• ₹3.16 crore loss due to non-collection of royalty on minerals
• Construction of depot on 7.67% disputed land without legal enforceability
• Non-renewal of Interim Speed Certificate for 5+ years (expired March 2017)