Almost 15 years after the first phase of the Hyderabad Metro rail construction began, its expansion stands at a pivotal juncture, awaiting sanction from the Union government.
“We have a practical and ambitious plan of expansion which will cater to the current and future needs of the city,” Zarfaraz Ahmed, Managing Director of Hyderabad Metro Rail Limited (HMRL), told The Indian Express. Here is what the projects will cover once the first phase is expanded and the second phase is approved.
Phase I of the Hyderabad Metro spans 69.2 km, covering three operational metro corridors or lines. Construction began in 2012, with an estimated cost of Rs 22,148 crore. This included Corridor I, which connected Miyapur to LB Nagar, Corridor II from Jubilee Bus Station to Mahatma Gandhi Bus Station and Corridor III from Nagole to Raidurg. It became operational in 2017.
The Hyderabad Metro was once touted as the world’s largest Public-Private Partnership (PPP) in the metro rail sector, with the conglomerate Larsen and Toubro Limited (L&T) bagging the project.
Generally, metro rail projects in India have been financed by the Central government in partnership with the state governments, even though urban development is a state subject under the Constitution. This is because the projects are capital-intensive. However, some projects have been solely funded by the state governments, including through private partnerships, according to the 2017 Metro Rail Policy.
“In 2017, we were the second-largest network in the country. But Hyderabad metro has fallen behind, and it is at the ninth position (in terms of extent) in the country.” Ahmed said.
What areas will the second phase of the Hyderabad Metro cover?
According to the official detailed project report, Phase II will expand the existing three metro corridors or lines — red, green and blue. The Phase II works are divided into two sections, A and B.
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Phase II A will include Corridor IV, stretching from Nagole to the Rajiv Gandhi International Airport, and cover a length of 36.8 km. Corridor V will connect Raidurg to Kokapet Neopolis, spanning 11.6 km. Corridor VI will connect Mahatma Gandhi Bus Station to Chandrayangutta, spanning 7.5 km, and Corridor VII will connect Miyapur to Patancheru, covering 13.4 km. Corridor VIII will connect LB Nagar to Hayathnagar, covering 7.1 km.
Under Phase II B, the corridor IX will connect Rajiv Gandhi International Airport to the Bharat Future City, covering 39.6 km. Bharat Future City is a flagship project launched by Telangana Chief Minister A Revanth Reddy, planned as a 30,000 acre greenfield smart city, designed as a sustainable, net-zero emissions hub. Corridor X will extend from the Jubilee Bus Station to Medchal, covering 24.5 km. Finally, Corridor XI will connect Jubilee Bus Stand to Shamirpet, covering 22 km.
In total, Phase II of the Hyderabad Metro is proposed to cover 162.5 km. For reference, the longest metro network in India is the Delhi Metro, currently covering around 394 km.
What is the current financial model of the metro, and what is proposed?
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The existing metro is a PPP project between the state government and L&T. Under this arrangement, L&T was responsible for financing, constructing, and operating the network, while the government provided land, approvals, and other support. Under this structure, L&T held a 90% stake in the project, and the government had the remaining 10%.
The new proposal, however, is different. “In the country, there were only three PPP metro lines other than the Hyderabad Metro. The Delhi airport, which was PPP, was later taken over by Delhi Metro Rail Corporation and the Mumbai Airport Metro line was taken up by the Mumbai Metro Rail Corporation. The only PPP operation line in the country is the Pune Metro. PPP is not a viable structure for metro operations,” Ahmed said.
According to the new proposal, the state government will take over the metro from L&T and integrate the existing lines into the state network. “The state network will be funded 50% by the state and 50% by the Centre,” Ahmed said.
At what stage is the proposal in?
The Telangana government will assume responsibility for the debt of the Phase I project, which is approximately Rs 13,000 crore. In addition to taking over the liabilities, the state will be making a one-time payment of around Rs 2,000 crore to L&T, which will serve as the final settlement for its involvement in the project.
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The state would then enter into a cost-sharing agreement with the government of India. “In principle, the detailed project report is accepted. We are waiting for some more technicalities to be ironed out,” Ahmed said.
