Mahalakshmi scheme impacts Hyderabad Metro ridership

This drop was attributed to the extended holidays and vacations in the third quarter, coupled with the initiation of the Mahalakshmi scheme offering free bus rides to women from December onwards

Hyderabad: The Mahalakshmi scheme introduced by the State government has had a discernible impact on the ridership of the Hyderabad Metro, according to P. Ramakrishnan, Head Investor Relations at Larsen & Toubro Limited, during the financial results for the quarter and nine months ended December 31, 2023.

Despite an overall improvement in average metro ridership from 3.94 lakh passengers a day in the third quarter of the previous year to 4.44 lakh passengers per day in the third quarter of FY24, Ramakrishnan revealed that the average ridership in the current year’s previous quarter was 4.62 lakh passengers per day.

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This drop was attributed to the extended holidays and vacations in the third quarter, coupled with the initiation of the Mahalakshmi scheme offering free bus rides to women from December onwards.

Ramakrishnan further disclosed, “Hyderabad Metro received financial support of Rs 150 crore from the State government during the third quarter. The cumulative amount received under this facility until December 2023 stands at Rs 900 crore.”

In an effort to address financial challenges, L&T plans to make a proposed investment of up to Rs 2,774 crore by subscribing to equity shares offered under a rights issue by L&T Metro Rail Hyderabad.

According to the financial report, this investment will be made at face value, and since the offer is extended to all shareholders at the same terms, the transaction is considered to be at “arm’s length.”

The financial report indicated that L&T Metro Rail Hyderabad, incorporated on August 24, 2010, for the development of the Hyderabad Metro Rail Project, received a total income of Rs 703.20 crore for the fiscal year 2022-23, Rs 475.37 crore for 2021-22, and Rs 386.02 crore for 2020-21.

The proposed equity infusion of Rs 2,774 crore aims to reduce the debt and interest burden of L&T Metro Rail Hyderabad, providing financial relief to the subsidiary.