24 February 2026·PIB

Cabinet approves extension of existing North-South corridor from GIFT City to Shahpur of Gujarat Metro Rail Corporation Limited (GMRC)

In this note

1. At a Glance

Union Cabinet approved a 3.33 km elevated extension of the existing North-South corridor of Ahmedabad Metro from GIFT City to Shahpur, executed by Gujarat Metro Rail Corporation Ltd (GMRC) [1].
Project cost ₹1,067.35 crore; targeted completion in ~4 years; three elevated stations [1].
Strengthens Ahmedabad–GIFT City intra-region connectivity — feeds India's only operational IFSC (International Financial Services Centre) [1].
UPSC relevance: urban transport governance, PPP/JV financing, GIFT-IFSC ecosystem, Metro Rail Policy 2017.

On 24 February 2026, the Union Cabinet chaired by PM Narendra Modi approved the extension [1].

Ahmedabad Metro Phase-I (40.03 km) — first stretch inaugurated March 2019; full Phase-I commissioned 2022.
Phase-II extends the North-South corridor up to GIFT City (Gandhinagar) — sanctioned earlier as part of the Ahmedabad–Gandhinagar twin-city metro plan.
The current sanction adds a further extension beyond GIFT City to Shahpur along the same North-South alignment [1].
GMRC: 50:50 joint venture between Government of India (MoHUA) and Government of Gujarat [1].

Project: Extension of North-South Corridor, Ahmedabad Metro — GIFT City → Shahpur [1].
Length: 3.33 km, fully elevated [1].
Stations: 3 elevated [1].
Cost: ₹1,067.35 crore [1].
Completion: ~4 years from approval (~2030) [1].
Ridership projection: ~23,702 passengers/day in 2029; ~58,059/day in 2041 [1].
Implementing agency: Gujarat Metro Rail Corporation Ltd (GMRC) — 50:50 GoI–GoG JV [1].
Nodal Ministry: Ministry of Housing & Urban Affairs (MoHUA).
Policy framework: Metro Rail Policy, 2017.

Economic

Direct connectivity to GIFT-IFSC — boosts financial-services workforce mobility; serves MNCs, educational institutions, commercial hubs along alignment [1].
Capex of ₹1,067 crore on a 3.33 km stretch → ~₹320 crore/km — typical for elevated urban metros in India.

Administrative / Governance

Demonstrates cooperative federalism through 50:50 Centre–State SPV model under Metro Rail Policy 2017 [1].
Phased sanction approach (GIFT extension now, Shahpur extension separately) reflects alternative analysis & economic-internal-rate-of-return (EIRR) scrutiny mandated by 2017 policy.

Environmental

Modal shift from private vehicles to electric mass transit → reduced vehicular emissions in Ahmedabad airshed (one of CPCB's non-attainment cities under NCAP).

Urban Planning

Aligns with Transit-Oriented Development (TOD) envisaged in Metro Rail Policy 2017.
Integrates Ahmedabad (commercial capital) with Gandhinagar/GIFT (administrative + financial hub).

Extension length: 3.33 km [1].
Number of stations: 3, all elevated [1].
Project cost: ₹1,067.35 crore [1].
Implementing entity: GMRC, a 50:50 JV of GoI & Gujarat [1].
Corridor extended: North-South corridor, Ahmedabad Metro [1].
Terminal stations of extension: GIFT City → Shahpur [1].
Projected 2041 daily ridership: ~58,059 [1].
Projected 2029 daily ridership: ~23,702 [1].
Approval date: 24 February 2026 [1].
Nodal ministry: MoHUA (not Ministry of Railways).
Governing policy: Metro Rail Policy, 2017.
GIFT City hosts India's first IFSC, regulated by IFSCA (HQ: Gandhinagar).

GS-II: Government policies & interventions — Centre-State JVs for urban infrastructure.
GS-III: Infrastructure — Urban mass rapid transit; financing models.
Question stems: 1. "Critically evaluate the Metro Rail Policy 2017 in light of expanding metro networks in Tier-1 cities. Illustrate with the Ahmedabad–GIFT corridor." 2. "Discuss how transit-oriented development around financial hubs like GIFT-IFSC can drive regional economic growth." 3. "Examine the role of Special Purpose Vehicles (SPVs) as instruments of cooperative federalism in urban infrastructure delivery."

GIFT City & IFSCA — sole IFSC regulator, unified financial regulator at GIFT.
Metro Rail Policy 2017 — mandates PPP component, AA, TOD.
National Common Mobility Card (NCMC) — interoperable transit payments.
PM-eBus Sewa & FAME-II — complementary urban green mobility.
Smart Cities Mission — Ahmedabad is a flagship Smart City.
AMRUT 2.0 — urban infrastructure financing convergence.
Multi-Modal Integration / PM Gati Shakti — national master plan for infra.
Other Metro SPVs — DMRC, BMRCL, KMRL — comparative governance.

Confusing GMRC (Gujarat Metro Rail Corp) with MEGA Co. — MEGA was renamed GMRC in 2019.
Misattributing metro projects to Ministry of Railways — they fall under MoHUA.
Assuming the extension is underground — it is fully elevated [1].
Confusing GIFT City (Gandhinagar) with a part of Ahmedabad municipal limits — it lies in Gandhinagar district.
Mixing the North-South corridor with the East-West corridor of Ahmedabad Metro Phase-I.