Telangana cabinet clears takeover of Hyderabad Metro from Larsen & Toubro, Rs 1.2 crore insurance for govt employees

HYDERABAD: State cabinet led by chief minister A Revanth Reddy Monday approved the takeover the Hyderabad Metro Rail project from Larsen & Toubro by March 31 and extension of a Rs 1.2 crore insurance cover and cashless medical treatment to the govt employees.

The decisions assume significance ahead of the budget session of the assembly beginning March 16, with the budget presentation scheduled for March 20. Separately, house listing under the Census exercise will commence in the state from May 11.


The cabinet also cleared a series of development initiatives within the Greater Hyderabad Municipal Corporation limits and two other municipal corporations falling under the core urban region economy (CURE) area inside the Outer Ring Road, where civic elections are due in the near future.

Revenue minister Ponguleti Srinivas Reddy, briefing reporters, said detailed modalities of the Metro takeover would be discussed during the budget session. The govt also decided to expedite phase-2 expansion of the metro rail network.

According to the cabinet sub-committee report, the state will pay about Rs 15,000 crore to L&T, including debt liabilities, to acquire phase-1 operations. The present value of metro assets is estimated between Rs 19,000 crore and Rs 22,000 crore, implying acquisition at roughly a 22% discount.

In another decision, the cabinet approved allocation of 153 acres in Kapra mandal to defence authorities on an equal-value basis, as 42 acres of defence land had earlier been utilised for construction of elevated corridors.

The cabinet also cleared modernisation of the Manjeera water supply scheme phases 1 and 2 in Hyderabad at a cost of Rs 722 crore, along with a new pipeline from Osmansagar costing Rs 282 crore. "Due to outdated pipelines and pump houses, about 30% of water is being lost. If the current project is modernised, this situation will be resolved and the water supply to the CURE area will improve," Ponguleti said.

Land belonging to Sharada Peetham in Kokapet was allotted to the Hyderabad Metropolitan Water Supply and Sewerage Board for infrastructure in the Neopolis area, with alternative land to be provided to the institution.

The cabinet also approved auction of shops built near double-bedroom housing units in the CURE area and decided to launch a special drive for construction of Indiramma houses across rural and urban areas, while exploring maximum central assistance for the programme.

Under the Comprehensive Road Maintenance Programme (CRMP phase-2), about 300 km of additional roads in Hyderabad will be developed at a cost of Rs 3,145 crore, supplementing 744 km covered in phase-1.

As part of the clean and green energy policy, a renewable energy distribution licence will be issued to data centres with a consumption of 300 MW. The cabinet also approved a multi-modal logistics park and food processing park at Koheda in Rangareddy district, transferring 223 acres to the Telangana Industrial Infrastructure Corporation, and allotted 239 acres to the agriculture marketing department for a world-class fruit market.