A CASE STUDY ON
HYDERABAD METRO RAIL
PROJECT

PROJECT REPORT

Masters of Technology
in 

CONSTRUCTION TECHNOLOGY AND MANAGEMENT

by 

AVINASH KOMMIREDDI –  18MCT0028
NATARAJA SAI
CHARAN –  18MCT0027

Under the guidance of

DR. Shanmuga Priya T

SCE 

For the course CLE6029 –  Infrastructure development and BOT, BOOT Projects  

School of Civil Engineering

APRIL 2018 
  

DECLARATION

We hereby declare that the project report entitled “ A CASE STUDY ON HYDERABAD
METRO RAIL PROJECT ” submitted by me to SCE, VIT University, Vellore in partial
fulfilment of the requirement for the award of the credits is a record of Bonafide project
work carried out by me under the guidance of DR.SHANMUGA PRIYA T  I further
declare that the work reported in this project has not been submitted and will not be
submitted, either in part or in full, for the award of any other course in this institute or
university. 

Vellore:

Date: 05-04-2019
  
A CASE STUDY ON HYDERABAD METRO RAIL
PROJECT

ABSTRACT

Metro rail has become an ultimate urban solution for transportation. It has been serving the lifelines in
urban spaces across the world with minimal carbon efficiency and also with fuel efficiency. It became an
ultimate solution for larger cities. Such type of Infrastructure is vital for cities like Hyderabad, India. It is
one of the newest Indian Cities to join metro rail.

This Paper discusses about the PPP structure of project, the financing information, Process analysis,
Procurement, Development, Challenges and Risks in the Project

Keywords: Metro rail Project, PPP Structure of project, Challenges, Risks

1.  INTRODUCTION

Hyderabad is a one of the growing cities that covers a area of 625 square kilometers of municipal
corporation and area of 6,852 square kilometers of metropolitan. It has become a hub for the Information
Technology / Information Technology Enabled Services (IT/ITES), Biotech and Pharmaceutical sectors.
It also became a tourist attraction for many people all over the world.

The population had kept the Hyderabad’s transportation system under high pressure. It mainly
requires a robust, dependable, comfortable, affordable and sustainable system for transportation. For, this
need, the Government of Andhra has planned a Mass Rapid Transit system (MRTS) covering three high
traffic density corridors of Hyderabad. The project is planned to be developed on a PPP basis through the

Build Operate Transfer (BOT) mode.

This project will have three corridors:

•   Corridor 1: Miyapur – L.B. Nagar (29.8 kms) covering 27 stations

•   Corridor 2: Jubilee Bus Stations – Falaknuma (14.78 kms) covering 16 stations

•   Corridor 3: Nagole – Shilparammam (26.51 kms) covering 23 stations.

There will be three depots, one for each Corridor, located at Miyapur, Falaknuma and Nagole.
The Corridors had been designed for peak hour peak distribution traffic (PHPDT) of 50,000, 35,000 and
50,000 respectively.
  
Fig 1: Route Map of Hyderabad Metro

2.  PPP STRUCTURE OF PROJECT

The Public Private Partnerships are agreements between government and the private sector for the purpose
of providing public Infrastructure, Community facilities and related services. The Private sector finance

the capital investment and recover the investment over the course of the contract.

Fig2: The range of PPPs

Hyderabad Metro Rail Ltd, it is a fully owned Public Sector Undertaking of Government of Andhra
Pradesh is currently implementing the Hyderabad Metro Rail Project. The project is to be developed under
a concession agreement on BOT (Build Own Operate) basis for a period of 35 years plus 25 years
extendable, including a construction period of five years. Under this concession agreement, the operator

has to design, finance, construct, operate, and maintain the three corridors and transfer these assets at the
end of the concession period.
The assets of the project include the following:
1.   Viaduct
 2.   Stations
3.  Bridges
4.  Depots
5.   Rolling stock
6.   Signaling system
7.   Traction systems
8.   Communications systems

9.
  Track work
10.  Fare collection system, etc.

The Concession Agreement is between the Govt and also the Concessionaire. The Concession Agreement
is thought to be the “heart” of a project as it determines the viability and  profitability.

A Concession Agreement includes the following:

1.   The Concession periods
2.   The construction duration

3.
  Toll/tariff structure with toll/tariff revision provisions
4.   Rights and obligations of both parties

5.   Government guarantees: The host government offers guarantees to the project promoters
(concessionaire) like supporting loans, guarantees of minimum operating income etc.

3.  FINANCING INFORMATION

The Cost of Project is 16,375 Cr. While the Government of India had approved a viability gap of 1458
crore for the project.

Means of Finance As Per INR Crore

Metro System - Equity 2,768 Crore

1,458 Crore
Metro System – VGH

9,906 Crore
Metro System - Loan

2,243 Crore
TOD Equity and TOD Loan

Table -1: Project Finance

This also includes the Advertisement rights, Parking rights, Transit Oriented, Development, CDM rights
in the project facilities and Depot lands.

4.  PROCESS ANALYSIS

The Govt of Telangana had been exploring the viability of various mass transit systems that are
efficient, economical and environment friendly in Hyderabad. So, a detailed feasibility study was carried
out by the Delhi Metro Rail Corporation in 2005. The study recommended a metro length of 61 kilometers
for over 3 corridors. However, the government had increased the length of line 3 by 5 kilometers. The
study further recommended to partly fund the cost of the project and that the Hyderabad Metro be bid out
on a BOT basis. It also suggested a Viability gap funding of around 40% of the project cost to make the
 project potentially bankable and economically viable.
The first bid was given to the Maytas (Hyderabad) through an Expression of Interest-cum-Request
for Qualification (EoI-cum-RFQ) in 2009. But the Maytas Metro had failed to give the finance closure
 before July 7 2009. So, the govt of Telangana had cancelled the Concession Agreement and took the
decision to re-bid the Project.
 
The Request for Quotation for the new process was released on July 16, 2009 and the date for the
submission of the Request of quotation was January 16, 2010. Then Eight bidders were qualified for the
Request for proposal process and later they were asked to submit financial bids for the project and the
Larsen & Toubro got the Project.

4.1  APPROVALS

•  Permits from State Government

o   Extraction of Boulders from quarry
o   Use of explosives
o   Cutting of Trees
•  Permission of Pollution Control Board
o  For installation of Crushers
o  Setting up Batching Plant

o  Installation of DG sets

•  Permission from Greater Hyderabad Municipal Corporation (GHMC)

o   Architectural/ development approval for proposed permanent structures

o   Disposal of Solid waste / excess material
o   Setting up construction yards/ temporary camps on Govt / private / Leased land
•  Permit for employing unskilled / semi-skilled labor during day/night
•  Approvals for electric supply/ distribution
•  Approvals of Traffic and running of vehicles on specified route

5.  CHALLENGES

There Many Challenges that are faced in this Metro Project

•  LAND
o   The Private acquisition is very difficult
o   The time consuming for this process is high
o   Risk for Concessionaire if it commences construction before availability of complete parcel

•  RIGHT OF WAY (ROW)

  There will continuous requirement of ROW.

o

o  The requirement of ROW is 25.5 meters for this project.

o   Traffic Permissions including TMP approvals and Local Traffic Police Permissions.
 •  ALIGNMENT FINALIZATION
o   There is limitation on Sharp Curves i.e., it should be less than 130 m.
o   The frequent changes in the alignment leading to re- design and it may lead to delay.
o   If there is no clarity on alignment it leads to stoppage of work.

•  RAILWAY APPROVALS
o   It should be approved by the Govt of Telangana and Ministry of Railways.
o  
The permission for working at railway crossings should be taken.

•  TRAFFIC MANAGEMENT & LOGISTICS: As the Construction was totally done with Pre cast
members, there should be good traffic management. This Project will require transportation of Raw
materials, pre cast segments etc., so there should be good traffic management and certain mitigation
measures should be taken to overcome this challenge.

•  REQUIREMENT OF LABOR: The requirement of labor for civil work is around 15,000 to 20,000
 No’s. And there is huge demand for the metro experts, this the major challenge which was faced

in the metro Project.

6.  RISKS

Pre-Operative Risks:

•  Delays in land acquisition

•  Financing risks
•  Planning
•  Regulatory, administrative and approvals delays
Construction Phase Risks
•  Design Risk
•  Construction Risk
•  Change in scope of Project
•  Financing risk in construction phase
Operational Phase Risks

•  Technology Risk
•  Market Risk
•  Performance Risk
Other Risks

•  Force Majeure
•  Change in Law Risk
 
 
 

7.  CONCLUSION

The metro is one of the choices of Mass Rapid Transport System for cities like high dense because
they offer a viable solution to the infrastructure that accompany urban expansion.

Hyderabad Metro Rail Project integrates a multi-modal public transportation with urban spaces,
and undertakes infrastructure development of Hyderabad. The metro is an urban modernization and
redesign effort to transform Hyderabad into a green city. When completed, the Hyderabad Metro Rail
Project will transform Hyderabad into one of India's most advanced cities, with an integrated urban
transport plan using inter-modal connectivity. The Metro will mark the beginning of an era of seamless

commuting
 8. REFERENCES
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[2] ht : /h derabad e rorail n
[3] h ://h derabad e rorail co rou e a h l
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[5] htto://metro.net
[6] httos://www.ltmetro.com/
[7]
[ ] httns://hmrl.co.in/articles/Hvderabad-Metro-Rail-Protect-NVS&Randhir-Reddv.odf
[9] htto //rai1ana1vsis in/articles/hvderabad-metro-rail-nroiect-overview/