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phase ii: PPP or own funds? Telangana govt’s Old City Metro plan stuck | Hyderabad News
HYDERABAD: Considering the demands and needs for extension of metro rail services in the city, the Telangana government made a beginning by earmarking funds for metro rail connectivity to international airport at Shamshabad under Phase II of metro rail project and also completing left over metro stretch in the Old City from MGBS to Falaknuma.
Sources said the state government is reportedly mulling various options to take up the project. The L&T Hyderabad Metro Rail Limited (L&THMRL) is believed to not be keen on taking up the pending 5. 5km stretch between MGBS and Falaknuma, which is part of 17km JBS to Falaknuma (Green corridor).
The reason for L&T’s reluctance is that the metro developer is already in loss. The L&THMRL management sought a bailout plan from the state a few months ago. The company’s losses are nearly ₹ 4,000 crore. The company said losses were due to closure during Covid-19 period and low ridership, especially on JBS to MGBS corridor. There were also reports about L&T plans to sell the project, but the company denied the reports.
Sources said the government has two other options.
One is giving the project to private operators on Public Private Partnership (PPP) basis like L&T or government should execute it on its own like Bengaluru Metro Rail.
“The government is not optimistic about PPP mode unless it gives more sops and offers some help apart from viability gap funding from the Centre. The other option is the state should take up with its own funds (EPC mode). But considering fund issues and priorities, it may not prefer this immediately,” a government official said.
Under Phase II the state is considering three lines and extension of one line covering 58km. “The cost of phase II was roughly ₹10,000 crore, which may escalate. If the government approves DPRs now, it will take minimum five to six years for completion,” an official said. As per proposal for metro phase II, the stretches will be from Miyapur to Lakdikapul, Raidurg to Airport, Nagole to LB Nagar, Tarnaka to ECIL.
Sources said the state government is reportedly mulling various options to take up the project. The L&T Hyderabad Metro Rail Limited (L&THMRL) is believed to not be keen on taking up the pending 5. 5km stretch between MGBS and Falaknuma, which is part of 17km JBS to Falaknuma (Green corridor).
The reason for L&T’s reluctance is that the metro developer is already in loss. The L&THMRL management sought a bailout plan from the state a few months ago. The company’s losses are nearly ₹ 4,000 crore. The company said losses were due to closure during Covid-19 period and low ridership, especially on JBS to MGBS corridor. There were also reports about L&T plans to sell the project, but the company denied the reports.
Sources said the government has two other options.
One is giving the project to private operators on Public Private Partnership (PPP) basis like L&T or government should execute it on its own like Bengaluru Metro Rail.
“The government is not optimistic about PPP mode unless it gives more sops and offers some help apart from viability gap funding from the Centre. The other option is the state should take up with its own funds (EPC mode). But considering fund issues and priorities, it may not prefer this immediately,” a government official said.
Under Phase II the state is considering three lines and extension of one line covering 58km. “The cost of phase II was roughly ₹10,000 crore, which may escalate. If the government approves DPRs now, it will take minimum five to six years for completion,” an official said. As per proposal for metro phase II, the stretches will be from Miyapur to Lakdikapul, Raidurg to Airport, Nagole to LB Nagar, Tarnaka to ECIL.
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