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Phalguna Jandhyala

Hyderabad, Aug. 15 DLF Ltd is currently preparing a feasibility study for the proposed Hyderabad Metro Link between the IT hub, HiTech City, and the Financial District on the outskirts of Hyderabad.

According to Government officials, the Letter of Assurance to the company was issued in April and the final study is likely to be submitted to the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) by mid-September.

“Around 90 per cent of the pre-feasibility study has been completed,” the official added.

According to the initial plan, the metro rail link will start from the HiTech City Multi-Modal Transport System Station to the Financial District with 11 stations covering 10.22 km.

The State Government is developing the Financial District spread over 130 acres at Khanamet village near HiTec City which would house the office of the Insurance Regulatory and Development Authority, ICICI Towers which would employ more than 25,000 people, among others. APIIC is looking at an investment of around $43 million from private sector partners in a joint venture format for developing the district.

According to a presentation made to the State Government by DLF, the total area for the proposed project is around 39.78 hectares out of which private land is 32.8 hectares, 4.78 hectares of Government land and the rest of the 2.2 hectares is forest land.

“The initial project cost is estimated at around Rs 1,643 crore. The link is expected to carry around 2.5 lakh commuters on weekdays and around 1.5 lakh commuters on weekends,” the official said.

He added that the annual revenues that would be generated from the proposed project is estimated at Rs 146 crore with Rs 121 crore from fares (average fare at Rs 15) and the rest as revenues from advertisement. The metro link’s annual expenditure is estimated at Rs 59 crore leaving an annual surplus of Rs 86 crore.

The payback period is 25 years with the financial internal rate on return, which is the indicator to measure the financial return on investment of an income generation project and is used to make the investment decision, at 8.25 per cent taking the debt equity ratio as 60:40.

“As per the current plan, we are looking at awarding the contract by August next year, so that the civil works are completed by August 2011. This would enable the system to be commissioned by August 2012 and commence commercial operations from December 2012,” he said.

More Stories on : Outlook | Railways | Andhra Pradesh

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