Hyderabad: It’s been a billion dollar question on when will be the 72-km Hyderabad Metro Rail project becomes operational ever since the 8-km first stretch on Nagole-Mettuguda missed the deadline in March 2015. Forget the completion of Rs 16,375-cr project, L&T Metro Rail (Hyderabad) is even clueless over the commencement of 20-km completed stretch, which is technically ready for operational.

“We really don’t know what’s happening. Several issues need to be resolved, but so far nothing is done. No dialogue between the state government and L&T,” said a senior official at Hyderabad Metro Rail Ltd (HMRL) told The Hans India.

Except site supervision, minor works and road repair activity along three corridors, nothing major progress is hardly seen on the Metro project.

Sources in the know further reveal that several factors between the Telangana government and the project concessionaire L&T Metro Rail such as cost escalation, rights over commercial space, court cases over right of way (RoW) and disagreement over alignment are the major hurdles on getting the Metro Rail on the right track.

Adding to this, political angle can’t be ruled out. Chief Secretary Rajiv Sharma is Chairman of HMRL and NVS Reddy is MD, while seven officials from the government are on the board of directors.

The list of directors from the state government are MG Gopal, special chief secretary, MA&UD Department, B Janardhan Reddy, Commissioner, GHMC, T Chiranjeevulu, Metropolitan Commissioner, HMDA, Sunil Sharma, Secretary, TR&B Department, N Siva Sankar, Secretary Finance Department, M Dana Kishore, MD, HMWSSB, and G Raghuma Reddy, CMD TSSPDCL.

The directors declined to comment on the project deadline and other issues that are creating hurdles for completion of the project, when The Hans India contacted them. However, a few days back L&T issued an official statement reiterating its commitment on the completion of project.

SN Subrahmanyan, Deputy Managing Director and President at L&T and Non-Executive Chairman at L&T Metro Rail (Hyderabad) Limited, said: "Overall 67 percent of the total work is completed till 30 September 2016, which by all standards is a speedy execution. Works in crowded and difficult stretches like Sultan Bazar area, are on brisk pace in spite of rains and festive season.”

Subrahmanyan further said: "We reiterate our commitment to complete this prestigious project expeditiously with all the support and cooperation of Government of Telangana State and the people of Hyderabad."

But L&T Metro Rail didn’t give any time frame. This is casting doubts over the progress of the project. In September, the Committee on Public Undertakings (CoPU) of Telangana Legislature, under the chairmanship of N Divakar Rao, reviewed the progress of Metro Rail project.

HMRL Managing Director NVS Reddy briefed the CoPU on the progress of the project and performance of HMRL. Reddy said despite several challenges and various hurdles, including about 200 court cases, permissions, issues pertaining to sensitive structures etc, they’re managed to run the show.

Cost Escalation

The entire 72-km first phase stretch comprising 66 stations is due to be completed by July 2017.

However, L&T is facing cost escalation to the tune of Rs 3,000 crore on account of delays in execution. It’s learnt that the concessionaire wants the state government to bear the cost escalation. L&T already missed its July 2017 deadline to complete the project.

In May, the company agreed that the project may not be completed before December 2018. Even if the project is completed by December 2018, it'll be a one-and-a-half-year delay. It’s expected to take two years for completing Ameerpet interchange junction.

Works on Sultan Bazar stretch are still in initial stage as only piers have been completed. Third stretch between JBS and Falaknuma is still uncertain. These factors further indicate the delay could be beyond December 2018.

L&T also ruled out the recent media reports speculating possible stake sale as L&T is exploring ways to exit the project. L&T Metro Rail (Hyderabad) also announced that the project is progressing with support and cooperation from Telangana government and Chief Minister K Chandrashekara Rao.

However, there is disagreement between the L&T Metro Rail and state government over passenger fare and revenue from commercial space. Passenger fares contribute 50 percent of the total revenues, while the rest from commercial space.

Subrahmanyan further said: “The project is moving on the right track and L&T is committed to the project. Whole-hearted support and cooperation from the Government of Telangana under the leadership of Hon’ble Chief Minister of Telangana, is fully there. City obstructions that crop up are being tracked and addressed at regular intervals at the highest level, to make sure that the momentum is not lost and the project is completed.”

The Commissioner of Metro Railway Safety (CMRS) has completed the inspection and issued the certification for stretches between Nagole to Mettuguda and SR Nagar to Miyapur routes. L&T in the release said that foundations for 59.05 km have been completed. Piers on 56.61-km stretch, span erection on 47.66-km route and track work on 35.70-km have been completed.

In all, 17 stations are completed in Stage 1 (Nagole to Mettuguda) and Stage 2 (SR Nagar to Miyapur), and work at 3 Interchange Stations (Ameerpet, MGBS & Parade Grounds) and other 30 stations are in progress. Subrahmanyan further said that all the 57 trains have arrived at the depots. Bharath Nagar Rail Over Bridge (ROB) is completed and work on the remaining seven ROBs is in progress.