The 'Fare Fixation Committee' is studying the Hyderabad Metro fare. Based on that report, it seems that there will be an increase in fares soon.
The 'Fare Fixation Committee' is studying the metro fares. Based on that report, it seems that there will be an increase in fares soon. On the other hand, L&T Hyderabad Metro Corporation has focused on the financial restructuring of the project. Rapid steps are being taken to increase revenue and make the project profitable.
To reduce the burden of interest on Hyderabad Metro
The total cost of metro construction is Rs.13 thousand crores borne by L&T company. Borrowed from a consortium of banks. Dragged into losses due to lockdown. L&T converted the commercial loans into guarantee bonds and reduced the interest from 9 percent to 6.5 percent due to the inability to pay the interest on the loans. On the other hand, the company has asked the government to support it by giving a soft loan of Rs.3 thousand crores. Metro sources said that the government has responded positively to this.
Hyderabad Metro Lands Monetization
The government has leased out land in different areas for 65 years for the Metro. Here the agreement is to undertake Transport Oriented Development (TOD) and generate revenue. It was decided to lease the lands without funds for development. Already leased 15 acres in Rayadurgam.
It will decrease to Rs.8 thousand crores
Kishoresen, full-time director and executive vice-president of L&T, disclosed that if Rs.5 thousand crores are received through soft loan and long-term lease of land, the debt burden will be reduced to Rs.8 thousand crores. Speaking to the media recently, he said that they are looking for another Rs 2-3 thousand crore equity investment.
