Hyderabad: L&T gets an extension on repayment deadline from financial lenders for Hyderabad Metro Rail project. The company is also in talks with state government relating to the escalating project cost.
Hyderabad Metro is heading towards completion by March 2019. This is almost a year and a half after the preliminary programmed schedule of July 2017. The lenders have given L&T more time for commercial operation up to July 2019, with a corresponding enhancement in loan stage.
As per the schedule revised, L&T will start repayment of the loan from 30th September 2020. With this extension corresponding cost delays is also estimated for claiming compensation, based on the L&T’s annual statement to its shareholders.
Looking at the cost of implementing the 72km rail project, the estimated cost comes to ₹16,375-crore for the elevated metro rail project. This is entire project covers over 6 million sq ft of transit-oriented development.
The project is financed via a term loan of ₹11,478 crore, Viability Gap Fund from the government of ₹1,458 crore and equity share capital of ₹3,439 crore.
Additionally, the state government has already invested over ₹2,000 crore in facilitating constructions.
As of March 2018, L&T has invested ₹14,723 crore in the project including ₹2,241 crore invested during 2017-18.
One stretch of 30 Km was inaugurated by Prime Minister Narendra Modi in November 2017. The two stretches are likely to be made operational by September and October-November.
The other stretch excluding the Old City segment, where there are right of way challenges, will be commissioned by March-April next year.
L&T while refereeing to Transit-Oriented Development stated that commercial, operations at two locations together with at the IT hub of Hitec city have commenced. The other two Hyderabad Metro stretches are closer to completion.
L&T is also exploring non-fare revenue generation option via the sale of products to metro commuters. This effort will be strengthened further owing to metro expansion leading to augmented ridership.
The Telangana government is also planning to implement phase II of Hyderabad Metro project. This will be covering 85Km and will also include airport link. This will improve the average ridership on the Hyderabad metro system considerably.
L&T is also exploring the opportunity of giving consultancy services for other metros projects.