Multiple factors have led to the cost escalation of Hyderabad Metro Rail project to the tuen of about Rs 2,600 crore.
The factors which led to the cost escalation, according to a report in The Hindu, are the project’s lack of last mile connectivity, commissioning of the two operating routes in stages and suspension of work on the the Old City route between Mahatma Gandhi Bus Station (Imlibun) and Falaknuma.
It further said that from an estimated total project cost of Rs 16,571 crore, the cost has zoomed to Rs 18,971 crore (16%) due to various delays in commissioning the entire routes only Corridor One is functioning in full and monetisation of the Transit Oriented Development (TOD) or commercial usage at stations has led to the escalation.
It is learnt that L&T will have to pump in additional equity of Rs 800 crore. While two out of the three corridors have been fully completed, the work on the third corridor connecting Secunderabad with the Old City is now under way.
Image Credit : thehindu.com