What next for the world’s biggest public-private partnership project, with the Hyderabad Metro Rail system being built at a total cost of ₹14,132 crore with L&T Metro Rail Hyderabad (L&TMRH) investing up to ₹12,764 crore? “Making this project financially viable,” says Hyderabad Metro Rail (HMR) Managing Director N.V.S. Reddy. He may sound sanguine, yet all indications are costs are only about to increase.
The concessionaire which has sunk in more than ₹9,000 crore into the project in the last five years including loans obtained from a consortium of banks led by the State Bank of India (SBI) and its own equity of about ₹ 3,500 crore was supposed to have completed the entire 72 km work across three traffic-dense corridors by July earlier this year as per the Concessionaire Agreement (CA) signed with the then AP Government in 2010.
It has already indicated that because of delays in handing over the land for taking up piers construction, laying the viaduct, stations etc., and also because of the demand for change in alignment in three locations — Sultan Bazar, Legislative Assembly and the line from MGBS Imlibun towards Falaknuma — the cost has shot up by nearly ₹4,000 crore.
“We had factored in losses in the first six years of the metro rail operations after which it begins to make operating profits with a mix of fares, real estate development and advertisements,” he points out. L&TMRH has been given 269 acres overall for development of 18 million square feet of commercial space spread across malls and retail in several stations where most first floors are being utilised for such purposes. It can sell stake in the company after a few years of commencement of commercial operations.
Entire Corridor One — L.B.Nagar to Miyapur is most likely to be opened in a couple of months time followed by Corridor Three — Nagole to HiTec City sometime middle of next year. But final extension up to Raidurg terminal station can be done only after GHMC completes a road under bridge which can eat up most of next year even as a proposed flyover is hanging fire.
Corridor Two — Jubilee Bus Station to Falaknuma will come to a grinding halt at MGBS with the Majlis Party unwavering on its demand for taking the line away from Darulshifa and through Puranapul, Kalapathar and Shamsheergunj, along the Musi river and away from the habitations, extending metro line by 3.2 km than original 6 km.
After one-and-a -half years of dithering and cost clock ticking away, the TS government saw reason in sticking to original alignment at Sultan Bazar and in front of Legislative Assembly on realising the escalated cost, but it has not been able to do the same for the old city. Municipal Administration Minister K.T. Rama Rao has recently claimed “talks are on”. Even if the opponent say ‘Yes’ tomorrow, it would take a good three years to build the line from MGBS to Falaknuma considering not even soil tests have been done and up to 1000 properties have to be acquired.
With the government giving a year’s extension till November next year and Mr. Rao too emphasising that the project will be done by then, it is anybody’s guess on whether the entire 72 km will be completed and how the escalated cost will be tackled.