+
Hyderabad Metro Expands with Airport Metro Express Phase
RAILWAYS & METRO RAIL

Hyderabad Metro Expands with Airport Metro Express Phase

In a significant development nearly six years after the initiation of the Hyderabad Metro Rail (HMR), the twin cities are poised to witness the commencement of the next phase of construction. The bidding process for the Airport Metro Express, connecting Raidurg to Rajiv Gandhi International Airport at Shamshabad, is nearing finalization. This phase encompasses a 31-kilometer project, involving an elevated, on-ground, and underground section, with an estimated cost of Rs 62.50 billion.

It took five years for the Telangana government to initiate the second phase, despite approving the proposal as early as 2018. Budget allocations were announced, and the Delhi Metro Rail Corporation prepared a detailed project report, but progress remained stagnant. The foundation stone for the project was finally laid by Chief Minister K Chandrasekhar Rao in December of the previous year.

Interestingly, unlike other metro rail projects in the country, the Airport Metro Express will be fully funded by the government under the Engineering, Procurement, and Construction (EPC) mode. This decision was made after the project failed to attract any bidders from infrastructure firms, despite offering more favorable terms than those provided to L&T Metro Rail Hyderabad (L&TMRH) for the first phase in 2010.

Officials highlight that in the first phase, the Central government contributed only 10 per cent of the Viability Gap Funding, amounting to Rs 14.58 billion, of which Rs 2.54 billion remains outstanding. The metro project, developed under the Public-Private Partnership (PPP) mode, was financed by a consortium of public sector banks led by the State Bank of India, which provided a loan of approximately Rs 110 billion, making it the only project of its kind in the country.

L&TMRH and HMR faced challenges due to the separate Telangana agitation, necessitating realignment whenever certain areas, such as Osmania University and Koti Women's College (now University), were inaccessible. In these cases, the piers had to be constructed along the main road instead of within the campus. Following the creation of Telangana, fresh demands arose to alter the alignment at Sultan Bazar, Legislative Assembly, and the Old City.

After extensive discussions and considering the cost escalation, the original alignment was retained, but the Old City line from MGBS to Falaknuma remains inactive. Just as the ridership was reaching 500,000 passengers, the COVID-19 pandemic forced a shutdown for five months.

Additionally, delays in obtaining permissions and a significant reduction in projected ridership resulted in a loss of approximately Rs 17.46 billion, as reported by L&TMRH. Initially, L&TMRH sought a compensation of Rs 30 billion, but the outcome of a high-powered committee led by the then Chief Secretary Somesh Kumar, assigned to address the demand, remains undisclosed.

Similar secrecy shrouds the fate of a fare revision committee report, with select "unofficial" leaks suggesting the government's reluctance to accept any fare hikes. The government aims to increase the number of trains operated by L&TMRH and expand each train's capacity from three to six coaches to accommodate peak-hour demand.

The concessionaire asserts that during peak hours, all 55 out of 57 train sets are in service, making it unfeasible to operate six-coach trains solely during rush hours. L&TMRH is yet to order new train sets, a process that may take around a year for delivery. Furthermore, they have threatened to sell off their stake to offset the losses, a move the government claims cannot be executed without its consent.

Commuters continue to express dissatisfaction regarding the lack of seamless first and last mile connectivity and cleanliness at the stations. This depicts the current state of the world.

In a significant development nearly six years after the initiation of the Hyderabad Metro Rail (HMR), the twin cities are poised to witness the commencement of the next phase of construction. The bidding process for the Airport Metro Express, connecting Raidurg to Rajiv Gandhi International Airport at Shamshabad, is nearing finalization. This phase encompasses a 31-kilometer project, involving an elevated, on-ground, and underground section, with an estimated cost of Rs 62.50 billion. It took five years for the Telangana government to initiate the second phase, despite approving the proposal as early as 2018. Budget allocations were announced, and the Delhi Metro Rail Corporation prepared a detailed project report, but progress remained stagnant. The foundation stone for the project was finally laid by Chief Minister K Chandrasekhar Rao in December of the previous year. Interestingly, unlike other metro rail projects in the country, the Airport Metro Express will be fully funded by the government under the Engineering, Procurement, and Construction (EPC) mode. This decision was made after the project failed to attract any bidders from infrastructure firms, despite offering more favorable terms than those provided to L&T Metro Rail Hyderabad (L&TMRH) for the first phase in 2010. Officials highlight that in the first phase, the Central government contributed only 10 per cent of the Viability Gap Funding, amounting to Rs 14.58 billion, of which Rs 2.54 billion remains outstanding. The metro project, developed under the Public-Private Partnership (PPP) mode, was financed by a consortium of public sector banks led by the State Bank of India, which provided a loan of approximately Rs 110 billion, making it the only project of its kind in the country. L&TMRH and HMR faced challenges due to the separate Telangana agitation, necessitating realignment whenever certain areas, such as Osmania University and Koti Women's College (now University), were inaccessible. In these cases, the piers had to be constructed along the main road instead of within the campus. Following the creation of Telangana, fresh demands arose to alter the alignment at Sultan Bazar, Legislative Assembly, and the Old City. After extensive discussions and considering the cost escalation, the original alignment was retained, but the Old City line from MGBS to Falaknuma remains inactive. Just as the ridership was reaching 500,000 passengers, the COVID-19 pandemic forced a shutdown for five months. Additionally, delays in obtaining permissions and a significant reduction in projected ridership resulted in a loss of approximately Rs 17.46 billion, as reported by L&TMRH. Initially, L&TMRH sought a compensation of Rs 30 billion, but the outcome of a high-powered committee led by the then Chief Secretary Somesh Kumar, assigned to address the demand, remains undisclosed. Similar secrecy shrouds the fate of a fare revision committee report, with select unofficial leaks suggesting the government's reluctance to accept any fare hikes. The government aims to increase the number of trains operated by L&TMRH and expand each train's capacity from three to six coaches to accommodate peak-hour demand. The concessionaire asserts that during peak hours, all 55 out of 57 train sets are in service, making it unfeasible to operate six-coach trains solely during rush hours. L&TMRH is yet to order new train sets, a process that may take around a year for delivery. Furthermore, they have threatened to sell off their stake to offset the losses, a move the government claims cannot be executed without its consent. Commuters continue to express dissatisfaction regarding the lack of seamless first and last mile connectivity and cleanliness at the stations. This depicts the current state of the world.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Embraer to Acquire 51 Per Cent Stake in Mahindra Aerospace Arm

Brazilian aerospace major Embraer will acquire a 51 per cent equity stake in Novavayu Aerospace, a step-down subsidiary of Mahindra and Mahindra, under an Investment Agreement notified by the automobile company in an exchange filing. The transaction will give Embraer control of the aerospace business. Following completion of the acquisition, Novavayu Aerospace will cease to be a wholly owned subsidiary and become an associate of Mahindra Defence Systems, which is a step-down wholly owned subsidiary of Mahindra and Mahindra. The agreement is expected to be completed on or before December 1. Mah..

Next Story
Infrastructure Urban

RBI Opens Special Dollar Window for Three State-Run OMCs

The Reserve Bank of India (RBI) has opened a special facility to meet the entire daily US dollar requirements of three public sector oil marketing companies (OMCs), in a move aimed at easing pressure on the Indian rupee. The facility will take effect on October 12, 2026, and remain available until further notice. Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation are eligible to use the arrangement. Under the facility, the RBI will sell US dollars to the three companies through designated banks, allowing them to meet their oil-import payments without sourc..

Next Story
Building Material

Cement Prices Likely to Rise Rs. 10-15 per Bag from Mid-October

Cement manufacturers in India are likely to raise prices by Rs. 10-15 per bag from mid-October, as they seek to offset persistent increases in power and fuel costs. Emkay Research said its channel checks indicated a high probability of an increase from October 12, supported by the start of the busy construction season and favourable demand-supply conditions. The sector had implemented similar rate adjustments of Rs. 10-15 per bag during the first quarter, but the increases were insufficient to cover higher operating costs. Prices also softened during July and August because of the monsoon, wid..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code