Hyderabad metro incurs loss of Rs.90cr amid Covid-19 lockdown

HYDERABAD: Whether it was the TSRTC, local trains or cab aggregators, there was no public transport available in the…

HYDERABAD: Whether it was the TSRTC, local trains or cab aggregators, there was no public transport available in the city during the two-month lockdown period. However, one of the most affected during the COVID crisis was the Hyderabad Metro Rail, which incur a loss of revenue amounting to Rs 90 crore within a span of two months.

With no communication from the Central government about the reopening of its services, Hyderabad’s icon of urbanisation is set to lost close to Rs 45 crore every month as long as it remains idle.

According to L&T Metro Rail’s latest financial audit report published in May, during the last financial year the company generated a revenue of Rs 590 crore solely from the operation of the metro.

On an average, the project generated an income of Rs 45 crore each month. Visuals from metro stations in the city reveal that mechanisms of social distancing, spacing between seats, and, line stickers have already been put in place.

The metro is also incurring expenditure that includes the maintenance cost of trial runs during the lockdown. 

Managing Director of Hyderabad Metro Rail Limited, NVS Reddy, told Express, “We have sent recommendations from our side to the Central government. However, we cannot proceed unless the Centre gives us a green signal.” Earlier this year, Reddy had revealed that that L&T has paying close to Rs 1,300 crore in interest every year.

The cost of the project has increased up to Rs 21,000 crore. A reliable source told Express, “It will take a ridership of over 9 lakh passengers every day, for an entire year, for the project to break even.”

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