Metro Man Sreedharan, the man instrumental in several successful metro projects in India had hinted about heavy losses to Hyderabad Metro Rail Project when it becomes operational. This rings danger bells to the concessionaire, L&T which also has to begin payments to banks as well by then.
Sreedharan also stated that L&T may demand the state government to reimburse the losses occurred due to delay in the project in the name of project realignments. The other day, the Union Government released its new Metro Policy which makes Private Partnership mandatory for Union Government funding.
Sreedharan clearly states that this policy will not work and no Private Players will be interested as Metro Rail Projects are not at all profitable. L&T was given 300 acres which can be used for Real Estate for their share in Hyderabad Metro Rail Project.
But it has become a waste due to Real Estates Slowdown. This is the prime reason for L&T not starting this project, Sreedharan say. He says the project will become a huge burden for the state government when it begins.