Hyderabad Metro Rail Project, the first Metro Rail Project taken up under Public Private Partnership model is struggling with the losses. It has posted ₹382.20 crore loss in 2019-20. This turned much worse in during the financial year 2020-21 due to the pandemic.
The project built and being run by concessionaire L&T Metro Rail Hyderabad (L&TMRH) posted a whopping ₹1,766.74 crore in the financial year. This is mostly because the train services were shut down for about six months from March 23rd to September 8th, 2020 due to the COVID-19.
Along with the fall in the ridership, the real estate has also fallen down due to the fall in footfalls and other additional costs to ensure the health and safety of the employees. Along with the ridership, the Metro model depends on the commercial activity in the stations and the malls operated by the Metro Rail company.
This has become worse with the COVID second wave with another Lockdown. The L&T Top bosses recently met Chief Minister K Chandrasekhara Rao seeking support for the project. There were many news reports that L&T is considering to exit the project if the government does not intervene.