The 72-km L&T Metro Rail Hyderabad Limited project is based on a revenue model of 50 per cent from passenger fares, 45 per cent from property development and 5 per cent from advertisement and other miscellaneous sources.
The Rs 14,132-crore project, being implemented under the public, private partnership mode by concessionaire L&T, has a viability gap funding from the Central Government to the tune of Rs 1,458 crore while the remaining Rs 12,674 crore is being raised by L&T, which has already achieved financial closure.
The Andhra Pradesh Government is in the process of spending additional Rs 1,980 crore for acquisition of 204 acres of private land, shifting of utilities, creation of right of way through road widening, relief and rehabilitation and pedestrian facilities.
According to the Socio-Economic Survey for 2012-13 presented in the Legislative Assembly today, it has been stated that the Metro has been designed in an innovative way to make it financially viable.
Job creation
Overall, the project envisages direct investment of Rs 20,000 crore, which includes project cost, property development component, and expenditure being incurred by the State Government and substantial spin off investments, which will be triggered by the project.
The Government said this will be one of the largest investments in the State with a potential to create about 50,000 jobs and many ancillary industries in Hyderabad and surrounding areas.
Fund allotment
The project has been allotted Rs 500 crore in the Budget as a part of the State Government contribution of Rs 1,980 crore to be spent over five years. In 2011-12, the State allotted Rs 350 crore and in the current fiscal Rs 600 crore was allotted for the project.