N.V.S. Reddy, the Managing Director of Hyderabad Metro Rail Limited (HMRL), has made statements that have upset senior government officials. Reddy has been leading the metro project for over 15 years, but now officials are considering replacing him.
In his comments, Reddy said that L&T, the company running the Hyderabad Metro, is losing Rs 1,300 crore every year. Over time, this has led to a total loss of Rs 6,000 crore. He also mentioned that banks are not willing to lend money for the expansion of the Metro.
These remarks came at a critical time when the state government, led by Revanth Reddy, was preparing to launch the second and third phases of the Metro project. These next phases are expected to cost Rs 25,000 crore.
A senior government official described Reddy’s comments as “shocking and unnecessary.” The official said that the project had already received approval and that the government was working hard to secure funding. The official also stated that Reddy should avoid speaking negatively about the project.
There have been reports suggesting that L&T is considering leaving the project due to the financial losses. Some of these losses were caused by delays after the state was divided. Former Chief Minister K. Chandrashekar Rao had delayed the project by demanding changes to its route but later approved the original plan.
An official mentioned that L&T struggled to make money from the land it received as part of the project. This was partly because the company lacked experience in real estate development.
