Hyderabad Metro builder L&T ready to exit project
HYDERABAD: Infrastructure major Larsen & Toubro (L&T) has said it is ready to exit the Hyderabad Metro Rail project. The company informed the Centre that it has no objection to handing over the project to either the Union or the Telangana government. It also suggested that operations could be shifted to a special purpose vehicle if required.
In a letter to the Union ministry of housing and urban affairs, L&T said the metro’s financial burden had become unsustainable. It noted that running trains had become difficult due to mounting losses and pending dues.
The Hyderabad Metro, India’s first public-private partnership (PPP) metro, began operations in 2017. Built at a cost of about ₹22,000 crore, the first phase covers 69 km across three corridors. The stretch from MGBS to Falaknuma, covering 5.5 km, remains incomplete and has been included in the second phase with an extension up to Chandrayangutta.
According to L&T, dues payable by the government stood at ₹3,756 crore in 2017 and rose to over ₹5,000 crore by February 2020. The company also pointed out that ₹254 crore due under viability gap funding from the Centre had not been released. At present, about 4.5 lakh passengers travel daily on the metro.
Ticket revenue is insufficient to cover expenses such as electricity charges, staff salaries and maintenance, L&T said. It added that it is willing to sell its equity in the first phase to the Centre or the state government.
The company has also submitted proposals for the second phase, including five corridors totalling 76.5 km under section A. These cover stretches such as MGBS–Chandrayangutta, Nagole–LB Nagar–Shamshabad airport, LB Nagar–Hayathnagar, Raidurg–American consulate–High Court and Miyapur–BHEL.
Under section B, three more corridors are proposed: Secunderabad Paradise–Medchal (23 km), Paradise–Shamirpet (22 km) and Airport–Future City (39.6 km). The total cost of the second phase is estimated at over ₹40,000 crore.
