Hyderabad Metro Rail: T'gana govt forms panel to review performance
The Telangana government has formed a high-level committee of Ministers and senior officials to look into the pros and cons of supporting the loss-making Hyderabad Metro Rail.
The government's decision comes after L&T, which operates the Hyderabad metro rail, made several requests to it seeking support as the elevated rail corridor had incurred heavy losses due to the COVID-19 pandemic and lockdown, an official release said on Tuesday night.
Chief Minister K Chandrashekhar Rao held a review meeting with ministers, officials of the government, and L&T Metro Rail.
According to L&T Metro rail's latest annual report, the metro rail's revenues from operations and other income in the last financial year stood at Rs 228 crore (including fare and non-fare revenue) as against Rs 598.20 crore for the previous financial year.
The firm's losses widened to nearly Rs 1,767 crore in FY21 from the previous year's Rs 382 crore on account of disruption in the metro rail operations due to low ridership and fall in footfalls at real estate operations.
"The state government would come to the rescue of the prestigious Hyderabad Metro project as it did for other sectors... Measures would be taken not only to support Hyderabad Metro but also to rejuvenate it,'' the CM was quoted as saying in the release. To study the matter extensively, the pros and cons, and arrive at a policy, the CM has constituted the committee.
At the meeting, the L&T officials discussed financial losses of the Metro, Bank loans repayment, mounting interests and urged the government to come to their rescue. KCR gave assurance to the L&T higher officials that the government would support Hyderabad Metro Project and help it get back on 'tracks', the release said.
The CM instructed the panel to submit soon its report on how to save Hyderabad Metro from incurring losses after thoroughly studying all the aspects, the release added.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)