Hyderabad Metro Rail will start getting revenue through real estate by leasing out commercial land and office space inside and outside Metro rail stations from December.
Metro Rail project developer L&T has targeted 45 per cent of revenue through ‘transit oriented development’ (TOD) plans as it expects only 55 per cent revenue through sale of tickets.
L&T has sought the approval of the state government to start huge shopping malls in Hitec City and Panjagutta with 12-screen film theatres.
Metro officials said that around 3,000 shops will also come up in the newly started 24 Metro stations from Nagole to Miyapur.
Though both malls were ready last year, the state government would not allow L&T to make them operational citing ‘concession agreement’ signed between L&T and the government, under which the malls have to start functioning only after Metro Rail operations commence.
L&T has spent nearly Rs 20,000 crore on building the Metro and to recover its investment the government allowed it to take up TOD under the PPP model since ticket collection alone cannot do that.
The government has allotted land to L&T in prime locations of the city to construct shopping malls and connect them with Metro stations to enable passengers to visit malls and return directly.
L&T has earmarked Rs 2,243 crore to construct four huge malls.
The Panjagutta mall has been constructed on 4.80 lakh sq ft while Hitech mall is 2 lakh sq ft.
Two malls that are under construction are in Moosarambagh and Erramanzil, of four lakh sq ft each. A shopping mall spread over 15 acres with 30 lakh sq ft is coming up in Raidurg.
Altogether that is 60 lakh sq ft of malls and L&T is banking heavily on them to recover its investment and make profit during its 35-year lease agreement with the government.
L&T has also made provision to rent or lease out 15,000 sq ft in each Metro station for shops.
Around 3,000 shops are expected to start operations in 24 Metro stations now open, by the last week of December. Source: Deccan Chronicle
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