Hyderabad: Chair of the K Chandrasekhar Rao minister announced Tuesday established a high-level committee to explore ways to expand support to Hyderabad Metro which has been financially hit by a pandemic.
The state government guarantee to support the project assumes the significance of the background report that L & T plans to sell its equity to overcome large losses.
However, according to the concession holder agreement, the previous agreement was needed from the government to disinvestment.
High-level committees consist of the minister of city, IT and industrial KT Rama Rao, Road and Building Minister Vemula Prashanth Reddy, Chief Advisor Rajeev Sharma, Chief Secretary of Somesh Kumar, Main Secretary of Narsing Rao, Special Finance Chief Secretary, Municipal Special Arvind Kumar and Secretary of Head Secretary Jayesh Ranjan.
The panel will also study the way for future expansion to meet the growing city mass transportation needs.
L & T officials, who met CM in Pragathi Bhavan on Tuesday, looked for state support and submitted the details of the loss due to a pandemic, bank loans and collected loan interest to the head office to the loan.
Source say L & T Metro Rail Hyderabad Ltd has suffered from 1,700 rs crore losses for 2020-21 fiscal because of the remaining services for almost six months after the Covid-19 outbreak.
This has posted losses in fiscal at this time also due to a decrease in passenger base and limited operation during the second wave.
“Mass transport projects such as Metro are very important for growing cities such as Hyderabad which is greater and needs to be expanded to serve large parts of people and regions in the future,” said CM KCR.
“The state government has supported various other sectors that are influenced by Covid-19 and will do our best to support the Metro to return to the profit path,” CM said.