HMR yet to receive remaining fund from Centre

Payment under VGF still pending

While there is renewed hope of second phase of the Hyderabad Metro Rail (HMR) kicking off with the government allotting ₹1,000 crore in this year’s budget, the pending payment from the Centre under the Viability Gap Funding (VGF) continues to stick as a sore thumb. This is for the first phase of the project built by L&T Metro Rail Hyderabad (L&TMRH) across three routes under the Public, Private Partnership (PPP) mode. The Centre had assured to give ₹1,458 crore or little more than 10% of the projected cost of ₹14,156 crore then and the money was being released in stages as per the construction progress in the seven years of construction for completing about 69.2 km - Red Line or Corridor One from L.B. Nagar to Miyapur, Blue Line or Corridor Three from Nagole to Raidurg and Green Line or Corridor Two - Jubilee Bus Station and Mahatma Gandhi Bus Station, Imlibun. Centre had released ₹1,204 crore and the balance amount of ₹254 crore has not been sanctioned even after completion of the first phase of the project - save for extending the line beyond MGBS into the Old City till Falaknuma, as per the latest government report. Whether it is because of non-completion of this stretch or because there were issues with regard to the revision of the fare structure at the time of the launch by L&TMRH, the fact is funds were not released despite repeated reminders.