Telangana to Tie Up with Centre, Global Firms for Metro Rail 2.0 Project

Hyderabad: The state government is likely to team up with the Centre to build Hyderabad Metro Rail 2.0 on the lines of Metro Rail projects in other cities. The existing Metro Rail project was built in the public private partnership (PPP) mode.

The state will retain 35 per cent of the project, the Centre will get a 15 per cent share and equipment manufacturers five per cent, while the remaining 45 per cent will be raised through international monetary agencies, according to the proposal.

With chances of the proposed expansion being taken up under the PPP mode looking slim following the lack of interest shown by the infra majors including L&T, concessionaire of the Hyderabad Metro Rail, the government was exploring other modes of investment.

Sources told Deccan Chronicle that constructing the new routes was estimated to cost Rs.25,000 crore and the Centre would be approached to take up the project under the joint venture mode. International funding entities like Japan International Cooperation Agency will be approached for funding half the cost, sources said.

According to infra experts, the high interest rate on capital was a major factor that was bleeding investors in urban transport projects. “Roping in the Centre will have the twin advantages of raising loans from international agencies with its counter-guarantee at cheaper interest rates and excluding the borrowing from the FRBM limits,” sources pointed out, referring to the restrictions in the Fiscal Responsibility and Budget Management Act.

Chief Minister A Revanth Reddy has laid special focus on the expansion of Metro Rail which he wants to serve the people’s mode of transport. He cancelled the proposed line from Gachibowli to the Rajiv Gandhi International Airport (RGIA) and instead proposed different routes to the airport that would be useful to the middle and lower middle classes who were flying abroad or working in the airport.

Accordingly, the Hyderabad Metro Rail Limited prepared the new routes and extension of the existing routes. They include Nagole-RGIA, Raidurg-US Consulate, MGBS-Falaknuma, Miyapur-Patancheru, Mailardevpally crossroads-proposed High Court complex at Budwel, LB Nagar-Hayatnagar and Falaknuma-Chandrayangutta crossroads.