Hyderabad: L&T Metro Rail (Hyderabad) Limited has approached the Telangana High Court against the Telangana State Electricity Regulatory Commission (TSERC) and power distribution companies (discoms) challenging the hike in the tariffs.
It complained that it is contrary and violative of the detailed project report of Hyderabad Metro Rail project of June 2003 and the Concession Agreement of 2016. Justice Annireddy Abhishek Reddy directed discoms Counsel to obtain instructions and posted the matter to Tuesday.
L&T Metro Rail Counsel Vikram Poserla on Monday submitted to the court that his client addressed a representation in 2016 to the Telangana Energy Department requesting for fixing of tariff on a “cost to serve” basis for the HMR as per clause 6.4 of the Concession Agreement.
Explaining the background, Counsel Vikram Poserla submitted to the court that HMR is already going through financial difficulties and has been incurring huge losses since 2018. If it is burdened with the increase in tariff or the HMR is treated like any other industry and is imposed a high tariff, then it will incur high costs in servicing the project which will have a direct impact on the passengers.
As the change of tariff came into effect from April 1, 2022, Counsel requested the court to suspend the implementation of the changed tariff to the extent of the HMR.
