The second phase of the Hyderabad Metro Rail, which is recognized as the second largest PPP project in Asia, does not seem possible at the moment. Since the first phase is running at a loss, private companies are not coming forward to participate in the second phase.
Chief Minister Revanth Reddy hastily laid the foundation stone. But it seems that it is impossible to move forward. Saying that the construction of the second phase of the Metro Rail is very challenging, Hyderabad Metro MD NVS Reddy himself revealed that private companies are not coming forward to undertake the construction of the second phase, and banks are not interested in providing loans.
Inaugurating the audit week celebrations at the AG office on Monday, he suggested that the second phase of the Metro Rail should be built by the central and state governments and should be managed under the auspices of the government. He said that he had discussed these issues at length with Chief Minister Revanth Reddy and that about 76 km of Metro Rail is being constructed in the second phase.
He said that L&T had suffered a huge loss in the construction of the first phase of the Metro Rail and that private companies were afraid to come forward after this experience. He said that L&T had suffered a loss of Rs. 6,000 crores due to the first phase of the Metro, and L&T was bearing a loss of Rs. 1300 crores per year. He said that in the other states, the respective governments are running the Metro.
He revealed that Rs. 24,269 crores are required for the construction of the second phase of the Metro, of which 48 percent is being funded by JICA. He said that recommendations have been sent to the Center only after the approval of the Cabinet and that the work of the second phase will start as soon as the Center gives permission.
NVS Reddy said that if there is public support, the second phase will be completed quickly. The MGBS- Falaknuma section has to be taken up for 5.5 kilometers. CM Revanth Reddy said that the route will be extended by another 2 kilometers and the train will run up to Chandrayangutta. But L&T raised its hands, saying that this is not something that can be done, and that it is not up to us. It made it clear that it will do the work if the government takes the initiative.