HYDERABAD (Metro Rail News): The State government is expected to rescue L&T Metro Rail Hyderabad Ltd by accepting the recommendations of the Cabinet Sub-Committee that investigated HMRL concerns. During an informal encounter with the media on Thursday, Transport Minister Puvvada Ajay Kumar said this. He stated that the government was willing to assist Metro.
According to the minister, if the Metro Rail is to survive, four lakh passengers should use it daily. He said that the corporation was given land for commercial purposes but could not use it.
L&TMRHL reported a net loss of Rs 382 crore in the previous financial year, according to its 2019-20 annual report. The overall revenue was Rs 1,370 crore. During the 169-day lockdown, the corporation faced a loss of Rs 300 crore.
According to sources, the government does not want the case to go to court, where it would be forced to pay as the court orders. Instead, after receiving a report from the Cabinet Sub-committee, the administration is likely to propose a bailout plan.
The sub-committee is expected to provide its report to Chief Minister K Chandrasekhar Rao in the near future. On January 17, the topic was brought before the Cabinet. The CM is believed to have agreed to the Municipal Administration department’s recommendation to consider L&TMRHL’s concerns and demands to solve the project’s financial hardship.
