We have been hearing about the extension of Metro Rail to Old City and the second phase from Rayadurg to Shamshabad for quite some time. But there is no movement on it. Finance Minister Harish Rao in the budget tabled on Monday allocated 500 Crore Rupees for the project but experts say the project may remain a non-starter.
Just for Rayadurg to Shamshabad Airport line, the project cost is 4,500 Crore but the allocation is a meager 377.35 Crore. Another 500 Crore has been allocated for Metro rail connectivity to Old city (for initiating works from MGBS to Falaknuma; 5.5km) which is again inadequate. Another Rs 1,500 crore has been allocated for other needs of Metro.
L&T which is operating the Metro Rail has lost Rs 4,000 crore since its inception. It lost Rs 1,700 crore in a single year due to the pandemic and is looking to exit the project. There is no mention of the bailout package the company has requested.
At this juncture, there is no way the project can move with such meager allocations. Also, the allocations can not motivate a new company to come forward. It is also interesting to note that the Government has allocated 1000 Crore to Hyderabad Metro in the 2021-22 budget but did not release a single penny.