High Court stays works on a key stretch of Metro Corridor-3

The Andhra Pradesh High Court on Thursday stayed the execution of all works of the Hyderabad Metro Rail (HMR) pertaining to corridor three between Greenlands and Shilparamam. The stay orders were given by Justice L. Narasimha Reddy, who was hearing a writ petition filed by a group of affected people who formed a Joint Action Committee. Their contention was that the metro rail alignment in respect of Ameerpet-Greenlands stretch was realigned without consulting the people whose properties would have to be demolished.

Some of the excerpts relevant points from the judgment are - 

- The effort of the HMR appears to be, to shield or immunise itself from any plausible objections, and unfortunately the State, in its anxiety to spread a red-carpet to a private agency, has chosen to violate and break the law, enacted by itself.

- It is not out of place to mention that the very purpose of enacting the A.P. Tramways Act was, keeping in view the present ‘Metro Railway Project’.  So much of urgency was felt that an ordinance was issued and later on, it became an Act.

- Metro Rail was granted on earlier occasion in favour of an agency, in a similar clandestine manner, keeping the entire project away from public scrutiny.  At least when its decision turned out to be a blunder, it ought to have been careful and followed the procedure prescribed under the relevant provisions of law.

- Acceptance of the contention of the respondents would lead to disastrous consequences.  A scheme, which involves transfer of vast extents of Government land, acquisition of large number of private properties, dislocation of the road transport system for a considerable time, conferring of the largesse of a high magnitude upon a private agency, cannot take place without reference to any public opinion.  

(Note: we will upload the judgment copy soon - C.R)

Metro rail cost overshoots estimates

Metro rail cost overshoots estimates

B.V. Shankar, Times of India, Mar 8, 2012.

HYDERABAD: The Hyderabad Metro Rail Project, plagued with initial hiccups, is poised to be the costliest urban rail service in India with each day's delay in commencement of construction work adding Rs 5 crore to the escalating project cost, now estimated at Rs 15,957 crore. Going by the calculations of Hyderabad Metro Rail limited (HMRL), the fare would be the most expensive in the country. The reason: escalation of project cost because of the tardy pace of work. 

In a counter affidavit filed before the high court, N V S Reddy, managing director of HMRL, has said he was concerned over the escalation of project cost due to delay in beginning of the construction work that is already a year behind schedule. As per the concession agreement, the construction work of the Hyderabad metro rail project should have commenced on March 3, 2011. The official estimated cost of the project at present stands at Rs 14, 132 crore but at an interest rate of 13%, a day's delay would increase the cost of the project by Rs 5 crore. 

Since the project has already been delayed by a year, the interest component has accumulated to Rs 1,825 crore. As a result, the final current cost of the project stands at Rs 15, 957 crore. N V S Reddy had said the HMRL would give right of way (ROW) to L&T executing the project this month so that works would start and stage I - an 8 km stretch between Nagole and Mettuguda - in corridor III would be operational in December 2014. But, till date, there has been no progress on this front and the possibility of the construction work starting in March has become virtually impossible. The escalation of project cost will only result in higher fares, as sale of tickets is a major component of cost recovery for the L&T, the concessionaire executing the project on a public private partnership (PPP) model. "The ticket rates are fixed according to the concession agreement and subsequent government order. It is true that the delay costs money, so we are as anxious as anyone that the project should take off at the earliest," said Vivek B Gadgil, chief executive and managing director of L&T Metro Rail Hyderabad. 

Among the three metro rail services of the country- Delhi, Kolkata, and Bangalore- Namma Metro of Bangalore is the costliest at present and Hyderabad Metro is all set to overtake it in terms of fare price. Now, the basic price of a metro ticket (minimum rate up to 2 km) in Bangalore is Rs 10, while the average basic prices are Rs 5.60 and Rs 5.00 in Delhi and Kolkata respectively. 

In Hyderabad, it would be a little higher than Rs 14, in case the metro rail is thrown open to service in 2016, the deadline as per the concession agreement signed between the state government and L& T in (Detailed Project Report) prepared in 2003, when the project was conceived with two corridors. Fixing the deadline at 2008, the DPR pegged the basic fare at Rs 5. The DPR said each day's delay would add Rs 35 lakh to the cost of project, considering inflation alone that would enhance the basic fare. 

A second DPR was prepared in December 2006 adding Corridor III, and the estimated project was revised upwards to Rs 7711 crore and the basic fare fixed at Rs 6 with 2011 as the deadline for the commissioning of the project. The second DPR also said that each day's delay would add Rs 35 lakh to the project cost.The cost of the project was estimated at Rs 4,206 crore in the DPR Project. 

"Tracing the footprints of the project since its conception, one can understand that the delay in starting the works is creating huge burden on the users of the service. The delay is caused due to ill conception of the project and we are not sure whether it would be commissioned before 2020. Even if that deadline is achieved, the fares will be so high that the service will not be affordable to the people for whom the public transport was aimed for," said Dr Chigurupati Ramachandriah, professor in urban studies, Centre for Social and Economic Studies. 

September 2010. As HMRL is unlikely to meet the deadline, the fare prices are destined to travel further north with each day's delay. A Government Order notified, on April 14, 2011, has said the basic fare of HMR ticket would be Rs 8 keeping April 1, 2014 as the date of commissioning of the project. The GO has authorized the concessionaire to increase the fare by 5% annually according to which the basic fare would be Rs 8.40 from April 1, 2015. Apart from this, the concessionaire is authorized to enhance the fare price based on the prevailing rate of inflation, insurance, currency fluctuation, rate of interest on escalated project cost. 

The concessionaire is allowed to revise the fare considering 60% of WPI (Wholesale Price Index, measuring inflation) and accordingly, the basic price would be Rs 9.40, on April 1, 2015. Considering other factors - insurance, currency fluctuation and floating interest rate - it would increase further and by April 1, 2016 the basic fare would be just a little more than Rs 14. And as per the BMRCL (Bangalore Metro Rail Corporation Limited) calculation, the basic fare for Bangalore Metro as on April 1, 2016 would be Rs 12.

Legal hurdles to Hyderabad Metro

Times View (box item)
     The main reason why the Hyderabad Metro Rail project is faced with opposition at every step is because it was thrust upon the city without consultations with people, the main stakeholders, as to what they wanted. Predictably then, the metro rail corridor alignments along bustling commercial stretches are being opposed tooth and nail with innumerable traders facing a loss of livelihood due to the project. The purpose of a public transport system like the metro rail is to ease commuters’ woes in the Greater Hyderabad region. But that cannot be achieved at the cost of inconveniencing the very people it aims to serve. The rail project will be riddled with problems unless the government revisits the blueprint with a fresh, people-friendly perspective.
Legal hurdles threaten to delay Metro rail project

Chances Of HMRL Making Dec. ’14 Deadline Look Bleak

BV Shiva Shankar TNN 
Hyderabad: The Hyderabad Metro Rail Ltd (HMRL) wants to kick off services with the first train plying between Nagole and Mettiguda some time in December 2014. 
    However, a series of roadblocks appear imminent which can only serve to delay the public transport project which has been designed to introduce muchneeded convenience to commuting in the city. 
    The HMRL is working towards a self-imposed deadline to ensure that Stage-1 — the 8km stretch between Nagole and Metiguda in Corridor III — is operational by December 2014 with plans afoot to commence work by March this year. 
    “Preliminary work including soil testing, identifying land for the depots and preparations for production of pre-cast slabs, have been completed. 
    “A few procedural issues exist but construction work should begin in March,” said a senior officer. Although HMRL is confident of meeting its deadline, the project is beset by all kinds of problems. 
    Having come together as Greenlands, Ameerpet, Madhuranagar, Yusufguda and Sri Krishna Nagar Joint Action committee (GAMYS-JAC), traders have moved high court on the charge that HMRL had unilaterally changed the alignment of Corridor III, between Nagole and Shilparamam. 
    The petition says that the alignment was changed to make the rail corridor pass through Ameerpet rather than Panjagutta, which was what had been envisaged in the original plan. The work cannot be taken up on the Ameerpet-Banjara Hills unless that issue is first sorted. 
    HMRL has now filed a counter affidavit arguing that the alignment has not been changed. The case is coming up for hearing Monday next and the fate of the work depends on its outcome. 
    The concession agreement signed between the state government and L&T, the project partner executing the works, stipulates five years to be the timeframe for the commissioning of the service. 
    The HMRL has yet to issue right of way to L&T but, as per the agreement, work should have started on March 3, 2011 and been completed by March 3, 2016. Needless to say, the current situation has made observers skeptical about the possibility of that deadline being met. 
    The HMRL is reportedly exploring the option of issuing right of way for those parts of Corridor III where there are no objections. “Going for piecemeal construction might be HMRL’s ploy to mislead the public on the progress of the work and silence the agitating traders. 
    “It is not fair on its part to go ahead with the work leaving issues unresolved,” said C Ramachandriah, an activist spearheading the agitation. 
    Even L&T, it is learnt, is not comfortable with right of way granted in bits and pieces and it could all add up to ensure that work is still to start in March. 
    Vivek B Gadgil, chief executive and managing director, L&T Metro Rail (Hyderabad), speaking from Dubai, told TOI that the company felt it imperative that the right of way notification is accompanied by no outstanding issues. 
    Apart from the alignment dispute, pending litigation on land acquisition, too, has hit the project. 
    Of the 269 acres of land earmarked for the project, 104 acres are tied up in litigation. Authorities said that they had got the high court’s nod to issue a fresh land acquisition notification which would deal with the legal hurdles. 
    However, many in the state government conceded that nothing short of a miracle could ensure that work on the metro rail project began in March this year. 

15 February 2012.

Press Release
Metro Corridor 3 works continue contrary
 to assurance to High Court

Despite the State government giving an undertaking on Friday (11^th Feb) before Justice L. Narasimha Reddy of the Andhra Pradesh High Court that it would not proceed with any construction activity relating to the Metro Corridor 3 (Nagole to Shilparama), there has been no halt to any of the metro works. (See the photos taken today – 15 Feb).

 A visit by the civil society activists revealed that the works have been going on as usual. This is a clear breach of the word by the State government given to the Hon’ble High Court. The judge was dealing with a writ petition filed by Greenlands, Ameerpet, Madhuranagar, Yousufguda, SriKrishna Nagar Joint Action Committee and 20 others.

We demand that the State government must keep its word in this regard. We also appeal to the Hon’ble Court to take this matter seriously.

Sd/-Prof. C. Ramachandraiah, Convenor, CBPTH, (Mobile: 94400 35405)

Mr. S. Jeevan Kumar, State President, Human Rights Forum, Andhra Pradesh.

Mr. O.M. Debara, General Secretary, Forum For a Better Hyderabad (FBH)

Press Release-Metro Corridor 3 works continue despite assurance to High Court Metro Corridor 3 works continue despite assurance to High Court Press Release - Metro Corridor-3 works continue Contrary to Assurance to High Court

15 February 2012.

Press Release

Metro Corridor 3 works continue

despite assurance to High Court

Despite the State government giving an undertaking on Friday (11^th Feb) before Justice L. Narasimha Reddy of the Andhra Pradesh High Court that it would not proceed with any construction activity relating to the Metro Corridor 3 (Nagole to Shilparama), there has been no halt to any of the metro works. (See the attached photos taken today – 15 Feb).

A visit by the civil society activists revealed that the works have been going on as usual. This is a clear breach of the word by the State government given to the Hon’ble High Court. The judge was dealing with a writ petition filed by Greenlands, Ameerpet, Madhuranagar, Yousufguda, SriKrishna Nagar Joint Action Committee and 20 others.

We demand that the State government must keep its word in this regard. We also appeal to the Hon’ble Court to take this matter seriously.

Sd/-

Prof. C. Ramachandraiah, Convenor, CBPTH, (Mobile: 94400 35405)

Mr. S. Jeevan Kumar, State President, Human Rights Forum, Andhra Pradesh.

Mr. O.M. Debara, General Secretary, Forum For a Better Hyderabad (FBH)

Corridor 3 works halted by High Court

Halt ‘corridor three' metro rail works, says court

HYDERABAD, February 11, 2012,

The State government on Friday gave an undertaking before Justice L. Narasimha Reddy of the Andhra Pradesh High Court that it would not proceed with any construction activity relating to Alignment III of the Metro Rail in the city that passes through the areas from Greenlands to Yousufguda via Ameerpet and Srinagar Colony.The judge was dealing with a writ petition filed by Greenlands, Ameerpet, Madhuranagar, Yousufguda, SriKrishna Nagar Joint Action Committee and 20 others.

They contended that the proposed route for the third corridor was prepared without regard to the efficacy of the alternative route initially approved/tentatively decided for the said segment. Counsel appearing for the petitioners said that the authorities were not filing their response before the court on the one hand, and, on the other, proceeding with work on the field.

The pleader represeting the State government assured the Hight Court that the government would not carry out any operations until it comes up with a counter affidavit in this regard.

Rs. 1.75 cr land acquisition scam unearthed in Metro Rail project

This is only the beginning in the Metro rail scam. And only 17 properties. More can be detected if properly enquired into as the land acquisition process continues for thousands of properties. There is something for everybody to loot in the metro rail scandal in Hyderabad! Read the story: 

http://timesofindia.indiatimes.com/city/hyderabad/Rs-1-75-crore-land-compensation-scam-unearthed/articleshow/11801477.cms