The Hyderabad Metro Rail Limited (HMRL) project expects to break even in six years, a top official said today.
The Hyderabad Metro Rail Limited (HMRL) project expects to break even in six years, a top official said today. “As per our financial model, L&T Metro Rail (Hyderabad) Limited will incur losses for about four-five years and sixth year it will break even that’s what our expectation is,” HMRL Managing Director NVS Reddy told reporters here after launching e-scooters of Metro Bikes for first and last mile connectivity at metro stations.
The concessionaire L&T Metro Rail (Hyderabad) Limited is building the project across three corridors. In November last year, Prime Minister Narendra Modi had inaugurated a 30-km stretch between Miyapur and Nagole out of the 72-km long elevated metro project. There are 24 stations in the operational 30 km stretch.
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“Sixth year we expect the break-even. Because, the debt burden is very very high. Out of about Rs 16,500 crore which they are investing Rs 3,000 crore is their equity and Rs 12,500 crore plus is debt. Interest burden alone per annum will be Rs 1,300 crore. That’s the main challenge,” Reddy said.
Hyderabad Metro is recording footfall of 80,000-85,000 passengers per day (in the operational 30 km stretch of Miyapur-Nagole), he said adding “Once we open remaining two sections I am expecting that it will be five lakh passengers per day and from there 15 lakh passengers in the next couple of years.”
On the Ameerpet to LB Nagar (16 km) stretch, Reddy said any time in August it will be opened for passengers. Reacting to another query on commercial space demand (spaces within Metro Rail stations and malls adjoining the stations), Reddy “the commercial space demand is excellent”.
The malls at Punjagutta and Hitec City,(already 90 per cent of space is booked), at Erramanzil (80 per cent space is booked), and with regard to Moosarambagh, which is under construction (50 per cent space is occupied), Reddy said. With regard to the stations, he said 70 to 80 per cent space is already booked.