Minister of State for Municipal Administration, K Taraka Rama Rao said that the maintenance of the Metro Rail Project is becoming tough day by day. He explained that the estimations have gone wrong for the first Metro Rail Project taken up in the public-private partnership (PPP) policy. He answered questions raised by several members during a debate in the assembly.
He said metro projects would be undertaken by the central and state governments anywhere but there is private sector involvement only in Hyderabad. He said that although L&T had won the contract for construction and maintenance of the Metrorail under the PPP scheme, it was not generating the expected revenue under the changed circumstances.
He said 50 percent of the investment in the metro project would have to be met by selling tickets to passengers. He said that if 15 lakh people commute in the metro every day, it would account for 50 percent of the investment, but so far 4 lakh people a day is the highest in the history of the metro.
Furthermore, the number of passengers has been declining for over a year in the wake of Corona. The minister also told the house that another 45 percent of the revenue was supposed to come from the malls and other leases and another 5 percent of the revenue coming in the form of advertisements.
The minister also said that 270 acres of land were given to L&T was not utilized even though the real estate sector in the city is on the upswing. He also explained that while L&T had 18 crore square feet of land in line with the structures, only 1.80 lakh feet were under construction and leased. In this context, the Metro, which is managed by L&T, has become financially chaotic, he said.
L&T representatives who met the Chief Minister KCR recently said that they had been severely affected by the Metro and appealed to them to give them a soft loan as given to the airport. KTR said the CM had directed him to form a committee with other ministers and officials to study the matter. He said the expansion of Metro in this context would take some time.