Hyderabad: “Old City Metro Finally Moving? Delays, Demolitions, and a Rs 1,000 Crore Price Tag

The Telangana government has announced plans to raise Rs 600 crore by auctioning open plots in the Uppal Bhagayat Layout to fund the 7.5 km Old City Metro corridor, extending from the Mahatma Gandhi Bus Station (MGBS) to Chandrayangutta. This move aims to bridge the financial gap for the long-delayed metro extension in the Old City.

Project Costs and Funding Details

The estimated cost of land acquisition for the Old City Metro corridor is Rs 1,000 crore. This includes:

• Land acquisition: Rs 525 crore
• Rehabilitation and resettlement: Rs 150 crore
• Structural compensation: Rs 325 crore

Additionally, Rs 175 crore will be required for ancillary expenses such as:

• Demolition of structures: Rs 40 crore
• Utility shifting: Rs 60 crore
• Road widening: Rs 75 crore

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The state government has already allocated Rs 500 crore in the budget for this project. The remaining Rs 600 crore will be generated through the auction of plots by the Hyderabad Metropolitan Development Authority (HMDA).

Delay in the Old City Metro Project

The Old City Metro extension, initially proposed in the first phase, has faced significant delays due to alignment disputes and challenges in acquiring properties along the route. The 7.5 km stretch will connect key locations, including Shalibanda, Falaknuma, and Chandrayangutta.

Road widening works for the metro corridor began this week, with demolition activities underway in Moghalpura and Kotla Ali Jah. These efforts focus on clearing structures, including several shops, to make way for the elevated metro corridor.

Increased Compensation for Landowners

Landowners affected by the project will receive Rs 81,000 per square yard as compensation, an increase from the initially proposed Rs 60,000. This adjustment was made following a request by Hyderabad MP Asaduddin Owaisi, aiming to ensure fair compensation for displaced residents and businesses.

Preserving Heritage and Religious Structures

To address concerns over the impact on religious, heritage, and other sensitive structures along the metro route, the Hyderabad Metro Rail Limited (HMRL) has developed engineering solutions to preserve over 100 such structures. These adjustments aim to avoid any significant impact on the cultural and historical fabric of the Old City.

Auction of Uppal Bhagayat Plots

The HMDA is preparing to auction open plots in Uppal Bhagayat Layout, with the process expected to commence soon. The funds generated through the auction will play a critical role in financing the metro extension, which has long been awaited by residents of the Old City.

With road widening underway and a clear funding plan in place, the Old City Metro corridor is poised to make significant progress. The auction of Uppal Bhagayat plots is expected to boost the financial resources necessary to complete the extension, offering improved connectivity while preserving the cultural identity of the area.