TS for metro fares under `50
The state government wants Hyderabad Metro Rail fares to be lower than in other cities. The maximum fare in Mumbai is `110, Chennai, `70, while in Delhi and Bengaluru it is `60.
TS wants the maximum fare to be `50 when the first phase of operations is launched next month.
TS government is of the view that the project developer L&T-HMRL can recover losses from realty projects for which 269 acres has been allotted in prime locations in the city.
The state government wants Hyderabad Metro Rail fares to be lower than other cities.
Hyderabad Metro Rail is a unique model in the country being taken up in PPP mode along the lines of the Singapore Metro, wherein the metro project has been aligned with real estate development.
Since metro rail projects over the world are running in financial losses as project costs could not be recovered solely on ticket fares, the state government has allowed the project developer to construct shopping malls and commercial complexes along the metro rail corridors to generate revenue and mitigate losses, and for this 269 acres of land has been allotted.
L&T has been asked to submit fare proposals this month, which will be finalised in November.
In 2011, the then Congress government had fixed the Hyderabad Metro ticket price band at `8 to `19.
However, in March 2016, municipal minister K.T. Rama Rao told the Legislative Assembly that the price band would be `13 to `25.
At a more recent meeting that Mr Rama Rao held with senior officials from municipal administration department and HMR to discuss the fare structure a price band of `20 to `50 was favoured, according to sources.
This would be for the first phase of operations starting in November and could be revised every year.
“We have requested L&T to submit metro fare proposals this month. We are in favour of `20 to `50 price band. However, we will wait for their proposals before taking a final decision by mid-November,” said a senior official.
The construction of shopping malls has been going on at a brisk pace at various locations along the metro corridors.