Hyderabad’s Old City Metro Expansion Surpasses Rs. 200 Crore in Compensation Payouts

Hyderabad’s ambitious Old City Metro expansion has achieved a significant milestone, with authorities distributing over 500 compensation cheques totaling Rs. 200+ crore to property owners affected by the project. Officials from Hyderabad Airport Metrorail Limited (HAMRL) confirmed that payments include land costs (ranging from Rs. 81,000 to Rs. 1 lakh per square yard) and rehabilitation support.

Also Read: Hyderabad Metro Extension in Old City: ₹1,000 Crore Compensation for Property Owners!

Despite slow demolition progress during Ramadan, compensation distribution and asset acquisition continue unabated. Over 980 structures between Mahatma Gandhi Bus Station (MGBS) and Chandrayangutta are slated for removal, with 80 properties already vacated and demolition underway for 41 structures.

Old City Metro Compensation Crosses Rs. 200 Crore Milestone

The 7.5-kilometer metro corridor from MGBS to Chandrayangutta, part of Phase 2 expansion, is set to transform connectivity in Hyderabad’s Old City. Here’s what you need to know:

• Project Cost: Rs. 2,714 crore (excluding compensation).
• Compensation Budget: Rs. 1,000 crore allocated for asset acquisition.
• Green Corridor: The stretch will become Hyderabad’s longest eco-friendly transit route, linking JBS Parade Grounds to Chandrayangutta.
• Timeline: Phase 2’s first five corridors aim for completion by 2029.

Demolition and Compensation: By the Numbers

HAMRL is adhering to the Land Acquisition Act to ensure fair compensation. Key statistics include:

• 11,000 Assets Identified: Along the MGBS-Chandrayangutta route.
• 980 Structures Marked: Primarily residences and commercial shops.
• 400 Preliminary Notices Served: With 325 approvals secured.
• 215 Rehabilitation Compensations: Disbursed to displaced families and businesses.

Officials emphasize that religious structures will remain untouched, focusing only on residential and commercial properties.

A Transformative Future

While the metro promises long-term benefits, local businesses face short-term disruptions. Hotels, tea stalls, clothing stores, and grocery shops in commercial zones are among the hardest hit. HAMRL is coordinating with stakeholders to minimize employment losses and expedite rehabilitation.

Did You Know?
The broader Phase 2 metro project, covering five corridors, has a total budget of Rs. 24,269 crore. Once operational, it’s expected to reduce traffic congestion by 40% in Hyderabad’s core areas.

HAMRL awaits final approval from the central government to accelerate land acquisition and road expansion. Post-Ramzan, demolition activity is expected to intensify, with the focus shifting to:

1. Completing asset acquisition by Q3 2025.
2. Launching tenders for construction by early 2026.
3. Integrating eco-friendly stations with solar panels and rainwater harvesting.

The Old City Metro expansion is more than an infrastructure upgrade—it’s a lifeline for Hyderabad’s historic neighborhoods. By prioritizing fair compensation and sustainable design, HAMRL aims to balance progress with heritage preservation. Stay tuned for updates as Hyderabad strides toward a greener, smarter future.

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Reported by Munsif | 19 March 2025