Why one must pay for use of toilets in Hyderabad Metro Stations

HYDERABAD: Hyderabad Metro Rail concessionaire L&T Hyderabad Metro Ltd has levied Rs 2 for urinals and Rs 5 for use of the main toilet in 29 metro stations in the city.

The user charges levied are small amounts and this would offset the cost of maintenance of the upkeep of the washrooms.

Why are user charges just and reasonable?

Hyderabad Metro Rail project is the world’s largest metro network under Public-Private Partnership.

Managing Director of Hyderabad Metro Rail Ltd (HMRL) N V S Reddy told NewsTAP on Wednesday that metro projects world over were not financially viable. No metro rail was making profits in the world, for they were long-gestation projects and were highly subsidised by respective governments.

Explaining the subsidy, he explained that, in most metro rail projects in the world, the entire capex (capital expenditure) was written off and the government’s paid subsidies even on opex (operational expenditure).

In the case of Hyderabad Metro Rail, Reddy said that it was operationally breaking even. Even Delhi Metro was operationally breaking even. While the costs of making the metro rail was exorbitant in foreign countries, India was making it cost-effective and it would cost much less in contrast.

“We are more competitive even when compared to China,” he disclosed. Giving details, he pointed out that the Hyderabad Metro Rail was built to a length of 70 km with just USD 3 billion, whereas it had cost USD 2 billion for just 2.5-3 km in New York City. There were hardly four or five metros in PPP mode in the world, including Bangkok (40 km), Delhi airport metro and 11 km in Mumbai which were not viable.

Nobody had attempted the PPP mode owing to questions over their viability as also subsidies involved.

For executing the Hyderabad Metro, concessionaire L&T Metro had raised a whopping Rs 16,000 crore debt at a huge interest rate of 10 percent. After debt restructuring, the interest rate could be brought down to 7 percent. Even that was very high as compared to government-funded metros. Because agencies like JIKA and other multilateral agencies would offer capital at very low interest rates and the hedging costs were taken care of by sovereign (state) guarantees. The interest rates in such cases could be around two percent.

Reddy said that the annual interest amount alone paid by L&T came to Rs 1,300 crore, which was huge. Despite the drain in its pocket, the L&T was operating the Hyderabad Metro with the highest standard. Therefore, it’s just and reasonable for the metro rail commuters to pay per use of toilets and enjoy a clean environment.

The MD of HMRL, in response to a tweet by a citizen, tweeted saying: “As L&T was unable to maintain the wash rooms & there's an increasing public criticism about the maintenance issues, they have handed over the wash rooms to Sulabh international. Hence Rs 2 for urinals/ Rs 5 for toilet usage is being charged.”

Though some tweeple sought to know if the L&T could not afford the costs or couldn’t it employ permanent janitors to maintain toilets, it’s actually easier said than done. The costs involved would become overheads for the concessionaire who is already bleeding. Therefore, in the best interest of a clean environment and clean toilets in the world class metro facility in Hyderabad, it’s easy for the commuters to take that small additional cost if they have to use the washrooms.