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L&T Metro Rail Hyderabad is exploring various non-fare revenue generation options and stepping up transit oriented development.
L&T intends to begin a large integrated development at Raidurg, one of the terminal points of the elevated metro project close to the Swedish multinational furniture retailer IKEA store.
There is potential to develop 3.5 million sq ft comprising commercial retail and Grade A office space.
So far, L&T has commissioned and operates three malls as a part of the overall project development plan.
The concessionaire L&T, which is implementing the ₹18,000-crore project, has operationalised 56-km of the total 72-km elevated metro rail project and is on course to commissioning an additional 10 km during the second half of this year. It is still to get ‘Right of Way’ for the Old City segment of about 6 km beyond the Musi river, close to the heritage structure, Charminar.
Having received extension of the date of commissioning up to December 31, 2019, it is looking at further development of the ToD, including the 3.5 million sq ft mega commercial hub.
Concession agreement
The concession agreement includes rights for real estate development of 18.5 million sq ft and the company has tied up entire debt for the project, including the cost of rail systems and 6 million sq ft of ToD.
In a communication to shareholders, while mentioning about risks and concerns, it stated, “With progress achieved, the construction risk by way of non-availability of required Right of Way and delay in approvals from Railways is mitigated to a large extent, except for one stage.” The overall ridership is expected to increase to approximately 10 lakh per day once the remaining segment gets commissioned and metro operates in 66 km.
Future
L&T stated that with the Telangana government planning to implement Phase II of the Metro project covering 85 km, which includes the airport link, the average ridership will grow.
The metro last week achieved total ridership of over 3 lakh per day, which was the highest it logged thus far. Once the frequency and last mile connectivity go up, this number is expected to rapidly increase.
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