Metro Rail to Renew Request for 20% Fare Hike
Metro operator cites Rs 6,500 crore loss, may seek VGF or fare hike approval from state
Hyderabad: Hyderabad Metro Rail Ltd (HMRL) plans to renew its request for a 20 per cent fare hike after Chief Minister A. Revanth Reddy returns from his official visit to Japan, sources said on Thursday.
L&T Metro Rail (Hyderabad) Ltd, the project’s concessionaire, said cumulative losses had reached about Rs 6,500 crore and argued that a revision of fares was essential for financial viability. The company first sought higher fares during the Covid-19 lockdown and approached the previous BRS government, but the proposal was rejected.
Officials now intend to seek either a viability-gap grant from the state or permission to raise fares. Metro Rail fares currently range from a minimum of Rs 10 to a maximum of Rs 60; a 20 per cent increase would push the upper slab to Rs 72.
Under the viability gap funding (VGF) scheme, governments can provide financial support to public-private partnership projects deemed economically important but commercially unfeasible.
