HYDERABAD, INDIA (Metro Rail News): On 15th September 2021, the Telangana Government has set up a committee to make recommendations on how to bail out Hyderabad Metro Rail, which faces losses. It remained shut for over a year and now has very low occupancy due to the covid-19 pandemic.
In June 2021, the Hyderabad metro reported over Rs. One thousand eight hundred (1800) crores losses, and on 25th June 2021, L&T CEO & M.D, Mr. S N Subramaniam, met Chief Minister Shri K. Chandrashekar Rao (KCR) discussed the matter. The L&T representatives had requested the CM that due to Covid-19, they are incurring losses, and the government should help them. On 14th September 2021, L&T officials again met the CM and sought help. As a result, the metro rail had resumed services on 06th September 2020 after remaining closed from 25th March 2020.
On15th September 2021, the CM constituted a committee to analyze the current situation and the necessary action for Hyderabad metro. The committee comprises Urban Development and Municipal Administration Minister K.T Rama Rao, R&B Minister Vemula Prashanth Reddy, government’s Chief Advisor Rajiv Sharma, Chief Secretary Somesh Kumar, CM’s Principal Secretary S. Narsing Rao, Finance Special Chief Secretary Ramakrishna Rao, Urban Development Special Chief Secretary Arvind Kumar, and Principal Secretary (IT and Industries) Jayesh Ranjan.
The committee will explore the possibilities of helping Hyderabad Metro as it was in heavy losses due to less traffic due to the pandemic. The CM also assured L&T that the government would support the Metro Project and help it get back on track. The decision to set up a committee was taken after L&T officials discussed with the CM about the financial losses of Hyderabad Metro, bank loan repayment, the mounting interest day by day and urged the government to come to their rescue, said CM Telangana.
According to the statement by CM’s office, within a short period, the Hyderabad Metro, by providing the safest travel services, became a popular public transport system. “The pandemic harmed Hyderabad Metro as it did on other sectors. For Hyderabad, which is growing day by day, metro rail services are necessary, and there is a need to expand the services in the future. Regrettably, the pandemic forced the Metro Rail project into a financial crisis, making it pay compound interests. The state government would rescue the prestigious Hyderabad Metro project as it did for other sectors.