
HYDERABAD: The state government will raise Rs 600 crore by auctioning open plots in the Uppal Bhagayat Layout to fund land acquisition for the 7.5 km Old City Metro corridor, from Mahatma Gandhi Bus Station (MGBS) to Chandrayangutta.
For 1,100 properties, the total cost of land acquisition is estimated at Rs 1,000 crore, which includes Rs 525 crore for land acquisition — Rs 150 crore for rehabilitation and resettlement and Rs 325 crore for structural compensation. In addition to the land acquisition costs, another Rs 175 crore will be required for other expenses such as demolition of structures (Rs 40 crore), utility shifting (Rs 60 crore) and road widening (Rs 75 crore).
The state government has allocated Rs 500 crore in the Budget for the Old City Metro Rail project. The remaining funds will be generated through the auction of open plots in Uppal Bhagayat by the Hyderabad Metropolitan Development Authority (HMDA). The auction is expected to commence soon.
Sources said the Old City Elevated Metro Corridor, initially planned as part of the first phase, faced numerous delays due to alignment disputes and challenges in acquiring properties. The 7.5 km extension will connect Shalibanda, Falaknuma and Chandrayangutta. Road widening works for the extension began this week, including the demolition of structures, primarily shops, in Moghalpura and Kotla Ali Jah on Tuesday.
Land compensation was initially set at Rs 60,000 per square yard but increased to Rs 81,000 per square yard following a request from Hyderabad MP Asaduddin Owaisi.
To preserve over 100 religious, heritage and other sensitive structures along the proposed route, the HMRL has devised engineering solutions to avoid any impact on these structures.