Hyderabad Metro Rail to purchase 60 coaches ahead of phase two approval

Hyderabad Metro Rail (HMR) has decided to procure 60 metro train coaches and has approached the government for necessary clearances without waiting for Phase-II approvals. The tender for new six-coach train sets will be floated as soon as the government grants permission, disclosed HMR managing director Sarfaraz Ahmad.

Meanwhile, the government-owned special purpose vehicle is preparing to take over Phase-I operations, covering 69.2 km, from L&T Metro Rail Hyderabad (L&TMRH) by the end of the financial year, he affirmed.

“The immediate priority is to take over HMR Phase-I with existing partners. Chief Minister A. Revanth Reddy’s direction is clear: passengers should not feel any difference when the government takes over. If governments are running metro services across the country, why can’t Hyderabad,” asked Mr. Ahmad.

The government is also trying to address issues related to common ticketing, first and last-mile connectivity and upkeep of street furniture below metro stations, he said.

Following the appointment of IDBI Capital as the financial consultant to review finance and accounting issues of Phase-I operations, HMR is set to finalise a technical consultant soon. The shortlist includes three public sector firms and three private firms, among them DB and Delhi Metro Rail Corporation (DMRC).

“We expect the financial consultant’s report within 10 days. The selected technical consultant will then have three weeks to submit its report on related issues. Simultaneously, we are in discussions with funding agencies to restructure existing loans under revised conditions,” said Mr. Ahmad, who also serves as the HMDA Metropolitan Commissioner.

The government agreement with L&T mandates taking over ₹13,000-crore loan component and paying ₹2,000 crore to buy out the project, making Phase-I a “100% Telangana government-owned entity”. L&TMRH currently has two types of funding instruments — NCDs (non-convertible debentures) and commercial papers. “We will explore if the funding agencies are willing to renegotiate terms even as we examine various options,” he explained.

“A decision will also be taken on restructuring HMR on the lines of DMRC. In any case, we will have two companies, including Hyderabad Airport Metro Limited, which will form a joint venture with the Centre for the proposed Phase-II operations,” he said.

As for HMR Phase-II A & B proposals, spanning a total of 162 km across eight corridors at a cost of ₹42,000 crore, the Centre is currently reviewing the technical aspects, he added.