The Hindu : Andhra Pradesh / Hyderabad News : Decks cleared for MMTS Phase II

Online edition of India's National Newspaper
Friday, Dec 24, 2004

Andhra Pradesh

Andhra Pradesh - Hyderabad

Decks cleared for MMTS Phase II

By Our Staff Reporter

HYDERABAD, DEC. 23. With the State Cabinet giving the green signal for the formation of a Special Purpose Vehicle (SPV) for the Multi-Modal Transportation Service on Wednesday, the way has been cleared for pepping up the services and also for taking up Phase II of the project covering far-flung areas of the twin cities.

The SPV is but a separate entity to look after the affairs of daily running, vigorous marketing, promotional campaigns, improving feeder services, common ticketing and above all to achieve financial viability for the MMTS. In the first phase of the project commissioned last year, 74 trains are running on the routes of Secunderabad-Lingampally, Secunderabad-Nampally and Secunderabad-Falaknuma, carrying some 25,000 commuters every day.

Feeder services

"Our objective is to improve MMTS operations on business efficiency levels with proper feeder services link up and affordable fares. We will be increasing the frequency and more trains too as the work progresses," explains the MMTS Project Director, N.V.S. Reddy.

Though no public transport is commercially viable in the world other than in Tokyo and Hong Kong, Mr. Reddy says that if the number of commuters increases to one lakh and with commercial exploitation of stations' space, the project can run on its own steam.

All the stations except Secunderabad, Nampally and Kacheguda are to be handed over to the new company for commercial operations and real estate development. Shopping facilities where an assortment of daily needs goods will be available, advertisement revenue and facilities for educational institutions near the stations are some of the measures being mooted to get additional revenue.

SPV composition

Transit-oriented development -- that is to allow small housing colonies to come up in the vicinity of each MMTS station, is also to be encouraged. "We are thinking of providing bus feeder link up to the stations within four-km radius of them by either tying up with the RTC or any other interested agency," says Mr. Reddy.

While officials of the South Central Railway have given provisional clearance for the SPV, the draft document would have to be cleared by the Railway Board and the final nod would come in a few months time. The SPV would be headed by the Non-Executive Chairman, Managing Director and four full-time directors taking care of technical & projects, operations, marketing and finance.

Cost-effective transport

Other than these there will be three non-executive directors appointed by the Railways, State Government and from the Ministry of Urban Development when they start funding. With the authorised capital of Rs. 1,000 crores, the State Government and the Railways are to pitch in Rs. 150 crores each initially with the debt equity ration to be 2:1. ---

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