The National Investment and Infrastructure Fund (NIIF) has given good news to Larsen And Toubro (L&T), the concessionaire of the Hyderabad Metro Rail Project. NIIF has come forward to invest in Hyderabad Metro, which is reeling under losses. The investment platform has expressed willingness to invest Rs 4,000 crore.
It is known that the Hyderabad Metro is already running at a loss of Rs 5 crore per day. Hyderabad Metro Rail has been approaching various banks for soft loans for some time now. The project is the country's first metro rail project undertaken in the PPP (Public-Private Partnership) model. It is also L&T's single-biggest investment in a project.
It has been suffering on account of cost and time overruns, and loss of traffic made worse by lockdowns during the Covid pandemic. The company's top brass recently met Telangana Chief Minister K Chandrasekhar Rao and sought some assistance from the government to keep the project afloat.