L&T has spent around ₹13,200 crores till date on the project with work on two other stretches pending. According to the estimate of Hyderabad Metro Rail Ltd Managing Director NVS Reddy, the project will break even only in the sixth or seventh year from the day of operation.
This will depend on the timely completion of the other phases. Due to the delay, the fares are on a higher side. As per the concessionaire agreement, 50% of revenue comes from passenger fare, 45% from property development and 5% from advertisements and others.
Interestingly, out of 250 metro rail projects in the world, only four are making money. The profitable metros are Singapore, Hong Kong, Tokyo, and Taipei. It has to be seen what is in store for the prestigious project of Hyderabad.
