The Hyderabad Metro Rail project is a 72 km metro system in Hyderabad, India consisting of 3 lines. It is being implemented as a public-private partnership between Hyderabad Metro Rail Limited and L&T Metro Rail (Hyderabad) Limited. The project aims to address traffic congestion in Hyderabad and improve transportation. It has a total cost of $3.44 billion and will be funded through debt, equity, property development, and government support. The project utilizes international contractors and technology and aims to transform Hyderabad into a more sustainable city.

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NVS Reddy
Managing Director
Hyderabad Metro Rail Ltd.
Hyderabad Metro Rail in PPP Mode
Presentation to the 6th Global Infrastructure Leadership Forum

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 A completely elevated MRT project in Hyderabad, Southern India
 3 Corridors/Lines (72 km) taken up in Phase I
 UMT sector - World’s largest Metro Rail project in PPP mode
 Main project cost : USD 2.66 b + Property Devpt. ph.I (USD 0.41b)
+ Land + other costs (USD 0.37 b) = USD 3.44 b
 Implementing Entity:
● Concessioning Authority: Hyderabad Metro Rail Limited (Govt. of AP)
● Concessionaire (Pvt. Sector): L&T Metro Rail (Hyderabad) Limited, an
SPV of USD 12 b L&T
Hyderabad Metro Rail Project
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India
India
Hyderabad
Hyderabad city – geographical location
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 Hyderabad, a city of 8m pop
 Capital of the Southern State of Telangana
 Historical City – now hub of pharma industry, research institutes,
IT/ITES Service Sector Economy
 Severe traffic congestion & increasing pollution levels
 Lack of efficient, reliable & comfortable PTS  increase in personal
vehicles: 3.0 million vehs + addition of 0.3 m p.a
 Total motorized trips: 7 m per day – Bus + local rail: 44%; Two
wheelers: 30%; Autos: 16%; cars: 10%
Traffic & Transportation Scenario in Hyderabad
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 Phase I: 3 corridors; 72 km; 66 stations & 3 Depots
 Integration/Interchange with Main rail terminals & Bus Depots
 ‘Transit +’ concept: Last mile connectivity with Feeder Buses, NMT,
Pedestrian Facilities & Street Furniture
 Not a simple Metro, but an urban redesign & rejuvenation effort to
transform Hyderabad into a people friendly green city
 Eco-friendly stations with natural ventilation, skywalks, bicycle
stations & tracks and other commuter friendly facilities
 Expected to generate about INR 500 b (USD 8.06 b) investments in
Hyderabad & it’s surroundings
Hyderabad Metro Rail as “ Transit + ”
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 35 yr concession, extendable by another 25 yrs
 World’s largest Metro in ppp mode
 Main project cost : USD 2.28 b (INR 14,132 Cr.) + Property Devpt. ph.I
USD 0.36b (INR 2,243 Cr.) + Land & other costs USD 0.32 b (INR 1,980
Cr.) = USD 2.96 b (INR 18,355 Cr.)
 Commercial risk by Concessionaire & no traffic guarantees
 Well balanced & bankable Concession Agreement; transparent global
bid process
 Technology–neutral & performance based ‘output’ oriented MSS
(tech specs)
 RfQ & RfP stages – DCA; MSS & SHA
PPP Format
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 Scope for design innovation & reduction in life cycle costs
 269 acres (109 Ha) land; commercial exploitation of air space to
create 18.5 m SFT – lease rentals
 Prefixed tariff & fare escalation formula; differential tariff (peak
vs off peak hours)
 Stations as hubs of activity – shopping malls, multiplexes &
leisure; hotels & eateries; hospitals, clinics, office space etc
 Ridership & property development boosting each other 
financial viability
PPP Format
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 Project cost : USD 2.73 b (INR 16,375 Cr.)
(MRT : 2.36 b (INR 14,132 Cr.) + Property Devpt : 0.37 b (INR 2,243 Cr.))
 Senior Debt : USD 1.91 b (INR 11,478 Cr.)
 Subordinate Debt : USD 0.17 b (INR 1,000 Cr. )
 Equity : USD 0.41 b (INR 2,439 Cr.)
 Other Sources (VGF) : USD 0.24 b (INR 1,458 Cr.)
Total : USD 2.73 b (INR 16,375 Cr.)
 Financial Closure achieved in March 2011
 Revenue Model: 50% from Fare box; 45% from Property devpt; 5%
Misc (Ads + Parking fee)
 IRR
 Project IRR : 13.89%
 Equity IRR : 17.50%
Funding Pattern & Financial model

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Lenders’ Engineer
Consultants for Carbon Credits
• Independent Engineer : Louis Berger, USA
• Safety Consultant : Eptisa, Spain
Programme Manager
Concessionaire’s Engineer(CE)
Independent Safety and RAM Assessor
Lenders Insurance Consultant-Marsh India Pvt. Ltd.
Operation & Maintenance Contractor
The Team (Authority, Concessionaire, Consultants etc.,)
Concessionaire : L&TMRHL
Authority : Hyderabad Metro Rail Limited (GoT)
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Engineering, Procurement & Construction contractors
Packages Vendors
Viaduct, Stations & Depots L&T Construction
Rolling Stock Hyundai Rotem, South Korea
Power supply + SCADA L&T Construction
Traction L&T Construction
Signaling & Train Control Thales, Canada (French company)
Communication Thales, Portugal (French company)
Track works
(Turnouts / Rails / Fastening system)
L&T Construction along with
(Voest Alpine, Austria + Tata Corus,
France + Vossloh, Germany)
O&M Operator Keolis France
Automatic Fare Collection (AFC) Samsung, South Korea
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Contact Information
Name : Mr N.V.S.Reddy
Company : Hyderabad Metro Rail Ltd.
Role in Project : Managing Director
Phone : +91 40 2338 8580 / 81 (Fax 82)
Email : nvsreddyiras@gmail.com
Website : www.hmr.gov. in
Name : Mr V.B.Gadgil
Company : L&T Metro Rail (Hyderabad) Ltd.
Role in Project : Managing Director
Phone : +91 40 67295500 | Fax: +91 40 23123015
Email : vbg@ltmetro.com
Website : www.ltmetro.in
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N.V.S.Reddy