Overview Despite the fact that transportation frameworks



Hyderabad, a burgeoning city in southern India, covers 6,852 square kilometers of metropolitan area and is an emerging/established hub for Information Technology / Information Technology Enabled Services (IT/ITES), biotech and pharmaceutical sectors along with being a tourist attraction. The exploding population has put Hyderabad’s transportation system under immense pressure.

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Despite the fact that transportation frameworks over the globe work contrastingly yet the shared objective of facilitating movement continues as before. One such method of transportation that takes into account vast number of suburbanites is Metro frameworks. Only metro ventures on the planet have hit the earn back the original investment and are not self-maintainable for the way that clients paying limit is at nadir, the administrations take up the onus of developing the mass transportation framework. The critical advance towards transporting urban suburbanites to work puts and to different parts of the city, taken by the administration of Telangana with less value stake as Mass Rapid Transit System (MRTS) being actualized on PPP premise wherein L Metro Rail Hyderabad Limited is in charge of development, operation and support of this Project.


In order to assemble a robust and self-practical transportation framework that mitigates heightening vehicular activity in Hyderabad and Secunderabad and fills in as a rich dish to requesting transportation needs, the Union Ministry of Urban Development guided Delhi Metro Rail Corporation to direct an essential overview to have a metro rail framework in Hyderabad in October 2003. With more than 4000cr investments, the first stage involves 71.16km with 3 paths and 66 stations is done in 6 phases. And in November 2017, the official of railroad security granted wellbeing endorsement for the 3 passageways (12 km extend from Miyapur to SR Nagar, 10 km extend from SR Nagar to Mettuguda and 8 km extend from Nagole to Mettuguda).




To figure transportation demand, trip generation, trip distribution, modal split and trip assignment were considered as parameters. The modular split between open, private and IPT transport are 45:45:10 with the presentation of Metro, the modular split for open transport is thought to be 65% by the year 2011 and 70% by 2021. Which implies The MRTS framework would convey 18.11 lakh travelers for every day in the year 2021.




After Maytas neglected to accomplish money related conclusion according to the timetable by walk 2009, the legislature of AP wiped out the agreement and brought in for crisp offers, in which L got the venture for 121 billion. A Model Concession Agreement (MCA) was given by the arranging commission of India for selection by the State Government. It depends on the Design, Build, Finance and Operate (DBFO) approach that means concessionaire bearing the obligation regarding point by point plan and building. The 71.16 km long Metro venture was assessed at ?14,132 crores in which The Central Government chose to manage 10% of it, while L was to tolerate the staying 90% of the cost. In an emotional unforeseen development, the cost of the task was updated upwards to ?15,957 crores in walk 2012 and that has been additionally amended to ?18,800 crores. (Nov 2017)


Development plan


The project was decided to be implemented in 2 phases. The proposed plans for the 2 phases are as follows:


Phase 1: In this phase, 3 corridors covering a distance of around 66.56 km was included. It involved optimization of the existing rail infrastructure and also consists of developing 10 new stations. Several new stretches like Lingampally-Hyderabad and Secunderabad-Falaknuma were identified. Initially, an investment of around 67 crores was proposed for this phase.

But the implementation of this phase faced many delays, for example, the metro rail stretches between Nagole and Secunderabad covering 11 km got operational in November 2107 although it was supposed to be completed by December 2015(late by almost 2 years). The details of the phase are given in Exhibit 1


·         Line 1 – Red Line – Miyapur – L B Nagar – 29.21 km (18.15 mi)

·         Line 2 – Green Line – Parade Grounds– MGBS – 10.06 km (6.25 mi)

·         Line 3 – Blue Line – Nagole – Raidurg – 29 km (18 mi)


Phase 2: The government has planned for further extension of the metro lines and it will be implemented in the 2nd phase. The details of the phase are given in Exhibit 2


Implementation of The Project


The city requires a strong, reliable, agreeable, reasonable and economical transportation framework. To address this need, the Government of Andhra Pradesh (GoAP) arranged a Mass Rapid Transit framework (MRTS) covering three high movement thickness halls of Hyderabad. The venture is wanted to be produced on a PPP premise through the Build Operate Transfer (BOT) mode. Hyderabad Metro Rail Ltd, a completely possessed Public Sector Undertaking of GoAP is at present executing the Hyderabad Metro Rail Project. The venture is to be produced under a concession concurrence on BOT reason for a time of 35 years, including a development time of 5 years. Under the concession understanding, the administrator needs to configuration, fund, develop, work, and keep up the 3 hallways and exchange the advantages toward the finish of the concession time frame. The benefits of the undertaking incorporate the viaduct, stations, spans, terminals, moving stock, flagging framework, footing frameworks, interchanges frameworks, track work, passage accumulation framework, and so forth. The benefits would be developed or obtained through contractual workers and gear providers. Likewise, the administrator would likewise approach the business improvement of land accessible at the terminals (212 sections of land) and 10% of the coverage zone of the station locales distinguished in the concession understanding. This totals to an aggregate most extreme of 12.5 million square feet on account of stops and a combined greatest of 6 million square feet on account of stations. The SPV would likewise be permitted to embrace land improvement over the stopping and dissemination zones at stations. All the land improvement related resources made under the undertaking would likewise be viewed as the benefits of the SPV which would be given over to the Government toward the finish of the concession time of 35 years.


The task was affirmed by the GoAP and worldwide offers were welcomed through an Expression of Interest-cum-Request for Qualification (EoI-cum-RFQ) in November 2005. The EOI-cum-RFQ had stringent specialized and budgetary criteria. The accompanying seven consortia presented their EOI alongside their offers for pre-capability. Five of these consortia were pre-qualified by the GoAP, with the Metrorail and ITD Cem consortia not qualifying. The Government of India considered the task for money related help under the VGF plan and after that permitted the GoAP to continue with the RFP Process. The RFP report, including the model concession assertion, manual of determinations and benchmarks and in addition the state bolster understanding, was issued to all the pre-qualified bidders in May 2007. The RFP procedure included specialized and money related recommendations. All the pre-qualified consortia qualified in fact and were requested to present their money-related offers in May 2008. The Maytas-drove consortium consented to pay Rs 30,311 crore to the administration amid the concession time of 35 years, while the Magna Allmore drove consortium consented to pay Rs 250 crore to the legislature. The two different bidders- – Reliance looked for a VGF give of Rs 2,811 crore from the legislature and Essar looked for a give of Rs 3,100 crore separately. The GVK– drove consortium did not present a money-related offer. In view of these offers, the Maytas consortium was granted venture. The task was to accomplish monetary conclusion by March 17, 2009.


A Special Purpose Vehicle (SPV) named Maytas Metro Limited (MML) was shaped with Maytas Infrastructure holding 26% value, Government of Andhra Pradesh (GoAP) holding 11% Nav Bharat Ventures holding 16% and IL and Ital-Thai holding 5% each. MML claimed the staying 37%, which it proposed to offer somewhat or totally, at a premium by restricting in more accomplices. The Government had been investigating the suitability of different mass travel frameworks that are proficient, monetarily practical and condition amicable in Hyderabad. In this specific circumstance, a nitty-gritty practicality examine was done by the Delhi Metro Rail Corporation (DMRC) in 2005.  The investigation suggested a metro length of 61 km more than 3 halls. Be that as it may, the administration expanded the length of line 3 by 5 km. The examination additionally suggested that property improvement would be required to somewhat subsidize the cost of the task and that the Hyderabad Metro be offered out on a BOT premise. It additionally prescribed a VGF of around 40% of the venture cost to make the undertaking possibly bankable and financially suitable.


Major milestones achieved in the development phase are the SPV was incorporated in September 2008; the signing of the Concession Agreement and Shareholders agreement took place on September 18, 2008; and extension granted for financial closure and performance guarantee on March 17, 2009. The Concession Agreement with Maytas Metro was in the long run scratched off on July 7, 2009, because of the disappointment of MML in organizing the Performance Security and accomplishing budgetary conclusion for the task. Because of the vast contrasts between the offers presented by each of the consortia the GoAP took the choice to re-offer the undertaking. The RFQ for the new procedure was discharged on July 16, 2009, and the date for the accommodation of the RFQ was January 16, 2010. 8 bidders fit the bill for the RFP procedure and were approached to submit monetary offers for the undertaking.

The framework is intended to take into account 50,000 PHPDT for Corridors I and III and 35,000 PHPDT for Corridor II. It should be assembled, worked, kept up and exchanged toward the finish of the Concession Period according to the arrangements of the Concession Agreement. The execution particulars and security measures are articulated in the Manual of Specifications and Standards (MSS), a very much pondered and distributed archive of GoAP, in light of “yield arranged” execution rationality. The miss gives the degree to enough outline adaptability and development, and it frames some portion of the Concession Agreement. There will be three warehouses, one for every Corridor, situated at Miyapur, Falaknuma, and Nagole.  Corridors 1, 2 and 3 will be intended for top hour crest circulation activity (PHPDT) of 50,000, 35,000 and 50,000 respectively.  The speed of the framework would differ from 34 kmph to 80 kmph and the trains would have a recurrence of 3 to 5 minutes.


Post Implementation Plan


L Metro has inducted world-class consultants for this major project:

AECOM – Feedback Ventures Consortium – Concessionaire’s Engineer
Parsons Brinckerhoff – Programme Manager
L&T Ramboll – Traffic Consultant
E&Y – CDM Consultant Keolis – Operations & Maintenance Contractor


Louis Berger has been delegated as Independent Engineer by L&T Metro Rail and the Government of Andhra Pradesh. This undertaking accomplished money related conclusion in a record a half year and is the biggest reserve tie-up in India for a non-power framework PPP venture. A consortium of ten banks drove by the State Bank of India, endorsed the whole obligation prerequisite for the task. The value segment for the undertaking will be mixed by the L&T Group. A Viability Gap Funding will be endorsed by Government of India, through the Ministry of Urban Development and the Government of Andhra Pradesh. Metro Rail Project will incorporate around 18.5 million sq. ft. of Transit-Oriented Development (TOD) in the reserved P&C regions and terminals. Passage box gathering from ridership, rentals from travel situated advancement space, publicizing, stopping and carbon credits are relied upon to add to the incomes of the venture. This venture is required to trigger strong financial movement in and around the city and will create a generous business. Following are a portion of the key learning’s and perceptions


Land Development: The government gave business advancement rights to very nearly 296 sections of land to the Concessionaire which basically comprised of land assigned to the stops and land for the stations. The land advancement permitted on account of stops was a total most extreme of 12.5 million square feet and on account of stations was an aggregate greatest of 6 million square feet. The aggregate estimation of land advancement totaled to a generous level of the task cost. This change of the use of arriving on a business premise combined with the metro venture prompted generally unique offers from the bidders. The offers were based on the consortium recouping its capital venture from the land improvement. The land showcase is extremely unpredictable and patterned in nature. An unfavorable standpoint for the segment would have the danger of trading off the improvement and development of the task. Moreover, land advancement normally gives speedier profits for capital put that interest in the metro rail framework.


Activity Risk: The concession understanding exchanged the movement hazard to a huge degree on to the legislature. According to the understanding, if the objective activity was lesser than 275 lakh traveler kms then the concession time frame would be expanded. Essentially, if the movement was more than the objective activity, the concession time frame would be diminished. Preferably such movement evaluations ought not to be a piece of the Concession Agreement and this market hazard ought to absolutely vest with the Private administrator. This would boost the administrator to give a superior level of administration and along these lines increment to the quantity of travelers going on the Metro line.


The Right of Way: The making of the privilege of the path for the viaduct of the Hyderabad Metro additionally represented a noteworthy test as the proposed course went through populated territories of the city. This obstacle was overwhelmed by utilizing convincing strategies like giving an extra Floor Space Index (FSI) for improvement. The nearby metropolitan enterprise i.e. More prominent Hyderabad Municipal Corporation (GHMC) was additionally firmly engaged in this arrangement procedure. The venture likewise endeavored to alleviate the danger of the task being slowed down because of personal stakes and additionally influenced private gatherings by utilizing government lands for the improvements of terminals, stations and so forth however much as could reasonably be expected.


To the extent development refreshes are concerned, groundbreaking for the venture was led on 26 April 2012, however, the work for passage 2 has been postponed because of dealers in Koti and Sultan Bazar demanding a realignment of the course to protect brokers and seniority legacy markets. The metro rail extends amongst Nagole and Secunderabad 11 km initially planned to be operational by December 2015, is presently somewhat operational since 29 November 2017. The whole 66.56 km 57-station the first stage is expected to be finished by December 2018 with Ameerpet-Hitech City line to be finished by June 2018.


Multi-show transportation is additionally wanted to go about as a feeder administration to the metro stations as briefed underneath

All stations will have efficient feeder bus services (“Merry go round” air-conditioned buses)
Effective integration & interchange with rail terminals at Nampally, Secunderabad, and Begumpet
Efficacious integration & interchange with bus stations at Miyapur, Dilsukhnagar, MGBS, Jubilee Bus Station, Rathifile, Koti, and Falaknuma
Link to MMTS services at Bharatnagar, Begumpet, Khairatabad, Lakdikapul, Malakpet, and Falaknuma
Adequate parking and circulating area for linking with other modes of transport
Reduces pollutants by about 3,100 tons per annum


Salient features


The Metro project elevated on erected pillar has two tracks is in the middle of the road without affecting the road congestion. The gauge will be standard with continuously welded rails to reduce the noise level. Stations will be almost at 1 km interval and will be accessible through lifts, escalators, and staircases. The trains will travel at an average speed of 34km/hr. with trains attaining the highest speed of 80km/hr. with a frequency of 3-5 min during peak hours carrying almost 16.75 lakh passenger per day as of 2011 and 23.75 lakhs by 2021.


These trains would be well air-conditioned and various other features for safety of passengers like signaling system to maintain specified speeds through ATP (Automatic train protection), ATC (Automatic train control), ATO (Automatic train operation).  These safety mechanisms and certifications will be at par with GOI guidelines based on Committee on safety Certification of guided urban Transit System.


Advanced telecommunication facilities for continuous communication between train drivers, stationmasters, and central control. Three lines would take 45 min for line 1, 22 minutes by line 2 and 36 min by line 3, which would take 1hr 50 min, 1 hr 10 min and 1 hr. 22 min by bus respectively. Appropriate parking space and circulating areas will be available at the stations. This project will be under the Metro Rail Act, enacted by GoAP.



Comparisons with MMTC & Delhi metro


Hyderabad Metro is essentially financed through private speculation, not at all like other metro extends that are altogether subsidized by general society exchequer. It is additionally the biggest PPP (open private organization) interest in India, and one of the biggest on the planet. The aggregate speculation could well be about Rs. 20,000 crores, if around 10% is appointed for land advancement. Other than a feasibility hole gives of Rs. 1,458 crores from the Central government, the rest will be private speculation. Other than appointing the privilege of a route for the hoisted metro tracks and stations, the State government is just required to give the land to three support terminals where land improvement can be embraced over the ground floor. Some little plots of land have additionally been included for stopping and shopping purposes. Specifically, the admission structure set down in the Concession Agreement will dependably stay moderate by virtue of more noteworthy efficiencies and in addition the cross-endowment from land advancement.


There have been a few defaults in releasing authoritative commitments. The soul of an organization has likewise been somewhat needing. Specifically, development was slowed down at various areas in light of over the top postponements by the administration in giving the privilege of the way and terminal land. This postponed the venture by more than two years, hence causing a noteworthy increment in costs, which would need to be borne by whoever is declared as the defaulter under the endorsed debate determination system. There will most likely be a few issues, particularly because of the sparse respect for the sacredness of agreements. Be that as it may, the responsibility system set down in the Concession Agreement is clear and exact as it can recognize and address any defaults or impropriety.


The other PPP venture being referred to is the Airport Metro Line task of Delhi Metro Rail Corporation (DMRC), which was ended by the concessionaire, Reliance Infrastructure, with a discretion honor of about Rs. 5,000 crores interest included against the previous, principally because of a defective concession understanding that empowered expanded expenses and claims. Remarkably, the assertion board containing three architects, impaneled by DMRC itself, held that the development works experienced genuine deformities, incorporating more than 1,500 breaks in solid structures. Independently, the Commissioner for Railway Safety lessened the stipulated prepare speed because of security concerns. The venture is presently being controlled by DMRC subsequent to the end of PPP. In entirety, open intrigue has been torn separated by methods for a tremendous end installment and also extensive repeating misfortunes in the years ahead.


The Hyderabad Metro is completely in view of the model concession assertion (MCA) of the recent Planning Commission though DMRC’s Metro Line depends on a twisted adaptation of the same MCA. Their examination will plainly uncover how basic the fundamental authoritative system is. This is similar to the product which decides the achievement of a satellite. This story reflects two extremes in a similar division, amid a similar period and in a similar nation. Would NITI Aayog or some other research organization think about the two nearly and draw lessons for the advantage of the administration and the general population? The lessons learned would be priceless for quickening the truly necessary foundation interest in India.



Financial Issues


The aggregate cost of the task was evaluated at Rs. 11,814 crores. While the Government of India had affirmed a deficit of Rs. 3,500 crores for the venture, MML had cited a negative reasonability hole subsidizing and along these lines did not look for VGF bolster for this task. The consortium cited a negative feasibility hole (i.e. the consortium would pay the administration) with a present estimation of Rs. 1,240 crores (marked down at 13.5 percent). This sum was proposed to be paid by the consortium over a time of 35 years according to the accompanying calendar shown in Exhibit 3.

·       Twentieth to 35th Year 1% of the net feasible toll in the twentieth year, 2% of the net feasible charge in 21st year et cetera.

·       The cost of the task was to be financed with an obligation to value proportion of 2:1. In this way, the consortium needed to raise obligation of Rs. 7,876 crores and contribute the value of Rs. 3,938 crores with no VGF bolster.

Legal issues


Agreement supported by State: The agreement will be supported by the state in many ways like extending concessionaire free access to the site for building and operating the project facilities like electricity, water etc. at commercial rates, police and traffic assistance on payment of charges and no tax imposed on additional toll, fee, charge or tax on MRTS facility.


Fare Structure: The fare is proposed to be at a minimum of 8 and maximum of 19 Rs with an average of 12rs in the year 2012 with an increase in fares in every 2 years with 50% WPI linked increase.

Force majeure events consist of indirect political events like war, political events like a change in laws and non-political issues like Act of God. The non-political and indirect political events consequences must be borne by respective parties and in case of political events, the value will be reimbursed to the concessionaire.


Substitution agreement: In the case of default, this agreement allows the lenders to substitute the concessionaire with the approval of GoAP. GoAP can select concessionaire if the lenders find no substitute.


Success or Failure


Hyderabad Metro began operations on 28th Nov 2017 post the inauguration by the Prime Minister Mr. Narendra Modi. The metro received an overwhelming response as about 200,000 passengers utilized the services on the first day of metro operations. Some of the installed facilities include automated ticket system with features like contactless smart card-based ticketing. The commuter’s top-up their smart cards by cash via ticketing offices at various stations; or through credit/debit/online payment by using PayTm adding the convenience factor; or Add Value Machines (AVMs) placed at different stations.


Hyderabad metro provides good service and cuts down the traveling time for passengers. But incompetent planning has led to a failure to provide parking spaces for passengers to park their vehicles. Additionally, many complaints from passengers have been received regarding the troubles in purchasing tokens at stations. Public also expressed its displeasure about the shortage of dustbins at metro stations and beyond affordable fares questioning the utility of the metro services by passengers in the coming years.


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