The Telangana government has formed a high-level committee to to bail out the Hyderabad Metro Rail, which has been incurring heavy losses due to the Covid-19 pandemic.
The committee members include: Municipal Administration Minister KT Rama Rao and R&B Minister Vemula Prashanth Reddy, among other senior officials. The CM instructed the panel to submit soon its report on how to save Hyderabad Metro from incurring losses.
The L&T, which operates Hyderabad Metro rail, recently sought help from the state government to overcome the losses.
The L&T officials discussed financial losses of the Metro, Bank loans repayment, mounting interests and urged the government to come to their rescue.
Hyderabad metro rail‘s revenues from operations and other income in the last financial year stood at ₹228 crore (including fare and non-fare revenue) as against ₹598.20 crore for FY 20, as per the L&T’s annual report.
As a result, the firm’s losses widened to nearly ₹1,767 crore in FY21 from the previous year’s ₹382 crore on account of disruption in the metro rail operations due to low ridership and fall in footfalls at real estate operations.
Telangana Chief Minister KCR has given assurance to the L&T that the government would support Hyderabad Metro Project and help it get back on ‘tracks’.
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