The document presents a comprehensive overview of the Hyderabad Metro project, highlighting its execution as the world's largest metro rail project under PPP mode with a total cost of ₹14,132 crores. Key features include the project's sustainable practices, expected ridership of 22 lakh passengers per day by 2024, and integration with multimodal transport. It discusses financial challenges, governance factors, and concludes that the project's economic benefits marginally outweigh the costs, emphasizing the importance of transparency and stakeholder engagement in PPP projects.

1. Presentation to Asian Development Bank Institute
Hyderabad Metro : PPP Infra. Project
(a case study)
Part of assignments of course on “Applying Principles of Quality Infrastructure
Development in Asia” : Oct - Nov. 2023
Group-1
● Mr. Anil Kumar Verma, Dy CPM, NHSRCL
● Mr. Kappey Yadagiri, Consultant, NCGG
● Ms. Mohita Taneja, Sustainability Manager,
CRISIL
● Mr. Sandeepan Roy, Assistant Professor,
Mahindra University
● Mr. Satish Kumar Chourasiya, Dy CPM,
NHSRCL
● Mr. Shubham Bhargava, Consultant, Tata
Consulting Engineers

2. Brief description of the project
Source – www.ltmetro.com

3. Brief description of the project
Source – www.ltmetro.com

4. Salient Features of the Project
● World’s largest Metro Rail project executed in PPP mode.
● The Project on Design, Build, Finance, Operate and Transfer (DBFOT) basis.
● Out of the total cost of Rs.14,132 Cr (US $ 2.3 bn) (EXACT YEAR OF COST BASE RATE ?),
Government of India has sanctioned Rs.1,458 Cr (10%) as one-time capital grant based on
competitive bidding. Concession for 35 years, extendable by 25 years. The remaining Rs.12,674
Cr (90%) is being invested by the Concessionaire M/s. L&T Metro Rail Hyderabad Ltd., a
special purpose company of the Indian infrastructure and manufacturing giant L&T.
● Additional 1980 Cr being spent by GoAP for Land Acquisition, shifting of utilities, R&R,
pedestrian facilities etc.
● Stations average interval @ 1KM – elevated stations with passenger access through staircases,
escalators and elevators;
● Parking space and circulating areas - for multi modal integration at the stations;
● Frequency 3 to 5 minutes during peak hours. Expected to carry 22 lakh passenger/ day by 2024;
● Maximum speed 80 kmph. Average speed 34 kmph – an international standard for MRT
systems.
Source – www.hyderabadmetrorail.in

5. Private Partners Involved
Source – www.ltmetro.com

6. Accelerating and Slowdown Factors
Accelerating Factors
● Accidents – Increasing road crashes
● Demand Pressure – Increasing traffic
● Good Governance – Speedy decision
making and problem solving.
● Encouragement of PPP by Government
● Availability of Specifications & drawings
and simplified procedure of approval
● Social Engineering – Involving general
citizens through different program, events
and campaign
Slowdown Factors
● Financial Challenges – Cost overrun due to
difference in time of planning and the
execution of metro.
● Environmental Challenges - Excessive
production of Cement & Concrete
● Difficulties in Land Acquisition - cost
escalation of over Rs 3,000 crore due to
land not acquired.
● Regional and Political conflicts of Interests
● Gap between Planning and execution
● Stakeholder Management – As the DPR
was kept hidden by the government
Source – IJRTE (PPP for Metro Project – A case study of Hyderabad metro),
L&T Metro Rail (Hyderabad) Limited

7. Revenue streams for L&T Metro Rail Hyderabad Limited
Source: L&T Metro Rail Annual Report FY23, L&T Metro Rail website
Fare collection
rights
● QR Ticketing
● Smart Card
● Whatsapp e-
ticketing
● Common mobility
card
Transit
Oriented
Development
(TOD) assets
● Office space
● Retail
● Hospitality
● Healthcare
● others
Retail
activities at
station
● Retail outlets
● F&B outlets
● Service outlets
Others
● Rentals of fiber
optic cables
● Right of way for
telecom towers
● Exploring
monetizing
carbon credits.
Advertising
● Rights business
● Advertising on
smart cards and
tokens
● Standalone
advertisements

8. Facilities for Multimodal transportation at Hyderabad Metro
Adequate parking and circulating area for linking with other modes of
transport
05
Link to MMTS services at Bharatnagar, Begumpet, Khairatabad,
Lakdikapul, Malakpet.
04
Efficacious integration & interchange with bus stations at Miyapur,
Dilsukhnagar, MGBS, Jubilee Bus Station.
03
Effective integration & interchange with rail terminals at Nampally,
Secunderabad and Begumpet.
02
All stations are have feeder bus service.
01
Source: Hyderabad Metro website

9. Contribution of Hyderabad Metro in attaining SDGs
● Metro Rail Hyderabad is committed to contribute in
achieving Carbon Neutrality
● Stations have rainwater harvesting pits
● More than 1000+ saplings planted
● Regeneration of 40% of its traction energy through
regenerative braking, which results in 30,890 t CO2
emission savings.
● 8.35 MWp Captive Solar Power Plant in 2 Depots & on
28 Station Rooftops, which is > 10% of energy
requirement
● Out of 57 stations, Hyderabad Metro Rail has its 23
stations IGBC Platinum certified.
Key Initiatives
● Approx. 38 million litres of fuel saved.
● Approx. 88 million Kgs of CO2 emission saved;
equivalent to planting approx. 1,750 trees
● Total 11 million units are generated through solar
plant viz. 10% of total power consumption.
● Total 36 million units of energy regenerated by
regenerative braking system of Rolling Stock viz.
approx. 40% of total traction power consumption
Contribution towards sustainable resource
management

10. DEVELOPING QUALITY INFRASTRUCTURE UNDER PPP MODEL
10

11. TYPICAL CONTENT OF INVESTMENT PLAN IN PPP PROJECTS
Pre - Construction Construction Post - Construction
Stimulating factors - Encouragement of PPP
through GOAP even after the failure of Maytas
Group. Project alive with support in the form of
regulations, well received from GOAP and was
passed in the year 2008. Financial closure was
obtained by L&T from a consortium of 10 banks
of ₹ 14,132 crs. A well-structured PPP agreement
was made for the said.
Discouraging factors - Lack of detailed
drawings for underground utilities was one of the
challenges before the start of the construction of
the Hyderabad Metro.
Stimulating factors – Good
governance, speedy decision making
and solving the problems. Furthermore,
In the Year 2014 the central
government changed which led to
generation of stable economics as in the
previous government the inflation
reached in double digits
Discouraging factors - Andhra
Pradesh divided into two states of
Telangana and Andhra Pradesh. This
created a cloud of political uncertainty
for the project.
Stimulating factors – Project
incorporates various features like smart
cards, free water, parking facilities,
bicycle facilities etc. to provide end-to-
end connectivity and increase the
comfort level of the passengers.
Discouraging factors - Ridership on
April 27, 2019, was around 2.55 lakhs
passengers per day against planned for
the year 2017 was around 17 lakhs per
day. The difference in time between the
planning and execution of the metro has
led to several of these problems.

12. TYPICAL CONTENT OF INVESTMENT PLAN IN PPP PROJECTS
Analysis -
∙ Risk for PPP is high because of uncertainty of ridership, there also exists a need for low interest funding
for the project to make the project more viable and to capture more participants for concessionaire.
∙ PPP projects can be a golden boon for metro projects for newly planned Special Investment Region (SIR), where it
is relatively easy to obtain continuous Right of Way (ROW) and map for underground utilities
∙ Good Governance with stable socio-economic conditions can really prove to be the driving force for new PPP
models in metros.
Conclusion -
∙ The difference between the floating of the DPR and execution of metro should be as low as possible.
∙ For projects like metro, it is important to consider the public feedback before executing the project to avoid
delay in the form of court order or public agitation.
∙ Political risk can be avoided if the metro alignment is thoroughly discussed with all the stakeholders before
finalizing it.
• To boost PPP projects, there is a need for low interest loans from the banks.
• The idea of PPP projects for metro with planned commercial development can work for new growing cities in
India.
• Dependency on the accuracy of the ridership is must before planning of project.

13. ECONOMIC ANALYSIS OF HYDERABAD METRO PROJECT-PPP
COST BENEFIT ANALYSIS (CBA) – Tool to evaluate Net Social Benefits i.e.
Hypothetical Values That Reflect Real Economic Growth.
DIRECT USER BENEFITS IN-DIRECT USER BENEFITS
• Rail User Time Benefits
• Rail User Comfort Benefits
• Traffic Relief Benefits after Constructions
• Accident Avoidance Benefits
• Flood Mitigation Benefits
• Air Quality Benefits
Construction cost – Rs 5949.94 crores
∙ Rolling stock –Rs 1810.85 crores
∙ Operating Cost- Rs 4322.40
∙ Land costs in RoW- Rs 1043 crores
∙ Other land for stations Depot etc- Rs 2009.58
∙ Social Distribution Cost – Rs 589.00 crores
∙ Severance Cost- Rs 1019.35 crores
∙ Traffic Delay Cost in Construction – Rs 469.41 crores
∙ Other Misc Cost - Rs 200.58 crores

14. SUMMARY OF ECONOMIC EVALUATION OF HMRP
SUMMARY OF ECONOMIC COST OF HMRP - SUMMARY OF ECONOMIC BENEFITS OF HMRP -
It can therefore be inferred clearly that the economic benefits of Hyderabad Metro Rail Project outweigh
the economic costs. The Cost-Benefit Ratio of 1.065 of the project implies that benefits are marginally
higher than costs. Therefore, CBA>1

15. Lesson from History of Hyderabad Metro
● Lack of Transparency : Initially, Maytas led Infra consortium was selected as
developer of Hyderabad Metro. Maytas was a subsidiary of Satyam Technologies, a
software giant in 2009 in India.
● DMRC, the consultant in 2008, objected change in proposed alignment to suit
commercial interest of Maytas, having big land pockets in those areas.
● Maytas lost metro project.
● PPP Project suffered for initial few years.
● DPR of Hyderabad Metro Kept hidden by Govt. even after application of various RTI
due to fear of disclosing vital information of high commercial value.
● This case is a warning that metro projects under PPP should be available in public
domain for transperancy
● Finally, L&T came in picture and begged Hyderabad Metro on PPP
Source – www.hyderabadmetrorail.in

16. Financial Statistics & recent development
● L&T has started propositioning Hyderabad Metro Project as an attractive
investment to funds, maybe sovereign wealth funds, maybe PE funds, maybe
some other REIT investors
● Started selling Land parcel attached to the metro project. 17 acres land parcel
already sold.
● L&T is planning to revise tariffs in a bid to improve the viability of the project
● L&T has availed Rs. 900 crore of the Hyderabad metro soft loan, approved by the
Andhra Pradesh government and has used it to repay the debt.
● L&T will work towards receiving a total of Rs 3,000 crore of soft loan from the
Andhra Pradesh government which will be used to repay the debt.
● Daily ridership of Hyderabad Metro = 5.5 lakh passengers. In last quarter it was
5 lakh. A year ago, it was 3.5-3.8 lakh
● L&T is working to onboard a co-investor for Hyderabad Metro. It currently
holds a 90 % stake, remaining 10% is with Telangana Government. L&T plans to
bring down its stake to 51 % in the first stage of its divestment.
Source – www.hyderabadmetrorail.in

17. Thank You