Centre abandons Hyderabad Metro, allocates Rs 30 bn to Bengaluru Metro

30 Jun 2023 CW Team

So far, the Centre has only provided Rs 12.04 billion as Viability Gap Funding (VGF) for Phase I of the Hyderabad Metro. This project, which was the largest metro rail initiative in the country under the Public Private Partnership (PPP) model, had an estimated cost of Rs 140 billion, with VGF amounting to around Rs 14.50 billion. The remaining Rs 250 crore assistance from the Centre has yet to be received by the Hyderabad Metro.

In an effort to address the transportation needs of the urban population, the Telangana Government has decided to expand the Hyderabad Metro project in Phase II. During a recent visit to New Delhi, Minister for Municipal Administration and Urban Development KT Rama Rao (KTR) submitted a letter to Union Minister for Housing and Urban Affairs Hardeep Singh Puri, urging him to approve Phase II and provide financial assistance.

The minister reiterated the appeal to expedite the approval for the 26-km-long Hyderabad Metro Rail line from BHEL to Lakdi-ka-pul, as well as the five-km metro line from Nagole to LB Nagar. Additionally, the minister once again submitted a Detailed Project Report (DPR) for the project to the Union Government.

While the files submitted by the Telangana Government remained neglected at the Housing and Urban Affairs Ministry, significant funding was granted to the Bengaluru Metro, raising concerns and questions.

Telangana has repeatedly requested an explanation for the rejection of Phase II by the Centre, which claims it is not financially viable. KTR questioned the prioritisation of 10 smaller towns in Uttar Pradesh, including Lucknow, Varanasi, Kanpur, Agra, Prayagraj, and Meerut, for metro services over the high-density corridors of Hyderabad.

The Telangana Government expressed disappointment with the response from the Union ministry, which stated that the Peak Hour Peak Direction Traffic (PHPDT) and ridership in Hyderabad are insufficient to justify approving Phase II of the metro rail project at this time.

It is important to note that Prime Minister Narendra Modi inaugurated the Metro services from Nagole to Miyapur via the Ameerpet interchange station on November 29, 2017. The metro quickly gained popularity, attracting nearly four lakh commuters daily before the COVID-19 pandemic. Even after services resumed, the ridership increased to over 2.5 lakhs per day.

Also read:
NMDC to invest in first gold block
16 states receive Rs 560.41 billion for capital investment

The State of Telangana has been subjected to unfair treatment by the BJP-led Central government, as evidenced by the recent allocation of funds to the Bengaluru Metro. A sum of Rs 30.45 billion has been granted to the project, bringing the total financial assistance for both phases to Rs 164.84 billion. In contrast, the expansion plans for the Hyderabad Metro have been neglected and received inadequate support from the Centre. So far, the Centre has only provided Rs 12.04 billion as Viability Gap Funding (VGF) for Phase I of the Hyderabad Metro. This project, which was the largest metro rail initiative in the country under the Public Private Partnership (PPP) model, had an estimated cost of Rs 140 billion, with VGF amounting to around Rs 14.50 billion. The remaining Rs 250 crore assistance from the Centre has yet to be received by the Hyderabad Metro. In an effort to address the transportation needs of the urban population, the Telangana Government has decided to expand the Hyderabad Metro project in Phase II. During a recent visit to New Delhi, Minister for Municipal Administration and Urban Development KT Rama Rao (KTR) submitted a letter to Union Minister for Housing and Urban Affairs Hardeep Singh Puri, urging him to approve Phase II and provide financial assistance. The minister reiterated the appeal to expedite the approval for the 26-km-long Hyderabad Metro Rail line from BHEL to Lakdi-ka-pul, as well as the five-km metro line from Nagole to LB Nagar. Additionally, the minister once again submitted a Detailed Project Report (DPR) for the project to the Union Government. While the files submitted by the Telangana Government remained neglected at the Housing and Urban Affairs Ministry, significant funding was granted to the Bengaluru Metro, raising concerns and questions. Telangana has repeatedly requested an explanation for the rejection of Phase II by the Centre, which claims it is not financially viable. KTR questioned the prioritisation of 10 smaller towns in Uttar Pradesh, including Lucknow, Varanasi, Kanpur, Agra, Prayagraj, and Meerut, for metro services over the high-density corridors of Hyderabad. The Telangana Government expressed disappointment with the response from the Union ministry, which stated that the Peak Hour Peak Direction Traffic (PHPDT) and ridership in Hyderabad are insufficient to justify approving Phase II of the metro rail project at this time. It is important to note that Prime Minister Narendra Modi inaugurated the Metro services from Nagole to Miyapur via the Ameerpet interchange station on November 29, 2017. The metro quickly gained popularity, attracting nearly four lakh commuters daily before the COVID-19 pandemic. Even after services resumed, the ridership increased to over 2.5 lakhs per day. Also read: NMDC to invest in first gold block16 states receive Rs 560.41 billion for capital investment

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