Hyderabad: A report by the Comptroller and Auditor General of India (CAG) revealed that L&T Metro Rail Hyderabad Limited (L&TMRH) was permitted to charge higher fares than initially agreed upon.
Between November 2017 and March 2020, commuters were overcharged, resulting in excess fares totalling up to Rs 213.77 crore. The CAG report highlighted that L&T Metro Rail Hyderabad had unfairly earned more than Rs 227.19 crore due to these excessive fares.
It highlighted the importance of enforcing the terms of the concession agreement and contractual provisions to ensure that the government receives its rightful dues.
Delays in finalizing metro corridors and acquiring land for the Miyapur depot were identified as significant contributors to project delays and cost escalations.
Additionally, six stations along Hyderabad metro’s Corridor-II, spanning 5.12 km between MGBS station and Falaknuma station, remain incomplete. This incomplete development has further contributed to escalating project costs.
In response to these findings, the CAG recommended that the government develop an action plan to promptly complete Corridor-II up to Falaknuma as originally planned. Failure to do so could result in low ridership and hinder the project’s success.
The compliance audit report from Hyderabad Metro Rail (HMR) acknowledged that the project had only achieved 22% of its expected ridership.
Insufficient parking spaces and other issues may impede the project’s ability to operate at its full potential in the future.
