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Maytas, Hyderabad Metro and the Politics of Real Estate

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Maytas, Hyderabad Metro and the Politics of Real Estate INSIGHT may be recalled that the consortium that Maytas, Hyderabad Metro and has two Hyderabad-based real estate com- panies, Navbharat and Maytas, bagged the Politics of Real Estate the contract for the Rs 12,132 crore project by not seeking any viability gap funding (VGF) and also offered a royalty of C Ramachandraiah Rs 30,311 crore to the GoAP. In this c onsortium, the dominant player is In the 10 days since the revelation “Earlier industrialists and then defence M aytas, the real estate firm of the sons of of the massive fraud at Satyam, contracts financed political parties. Now the information technology major, Satyam there has been much speculation real estate does, especially in the states Computers. A new company, Maytas because chief ministers have easier access M etro Limited (MML), was floated by the that the holes in the software to it. The kickbacks are huge” – Charles successful consortium and signed the company’s books were caused by Correa (Interview, Times of India, c ontract with GoAP on 19 September 2008. the promoters’ links with Maytas, 10 September 2008). The HMRP comprises three routes for a the infrastructure company that length of 71.16 km: Line-1 from Miyapur to 1 Introduction L B Nagar (29.87 km); Line-2 from in recent years has become the J ubilee Bus Station (JBS) to Falaknuma favourite of the government he shocking revelation on 7 Janu- (14.78 km); and Line-3 from Nagole to of Andhra Pradesh. ary that Satyam Computer Services Shilparamam (26.51 km). The entire This article puts under the Thad been cooking its books for project is an elevated corridor along the years has caused an earthquake in the central meridian of roads with two paral- magnifying lens the award I ndian corporate sector. Satyam’s revela- lel tracks of rails, and 66 stations which in 2008 of the massive tions turn the spotlight back on Maytas, will have long additional platforms with Rs 12,000 crore contract to the infrastructure group held by the pro- staircases, escalators, lifts, etc. The elevat- Maytas to build and operate the moters of Satyam. Indeed, it was Satyam’s ed track will be at a height of 35 to 50 ft, at proposed takeovers of Maytas that set in some places as high as 60-70 ft in the Hyderabad Metro. motion the events that have led to the near thickly built core city. The metro corridors collapse of Satyam itself. Was the selected will have to cross several existing flyovers bidder for the Hyderabad Metro Rail Project and also intersect each other at three (HMRP) favoured even before the final p laces. Huge shopping complexes and t endering was over? Does it point to a malls are likely to come up at several metro “ political scam”? The managing director stations. The cost of this project has al- of Delhi Metro Rail Corporation (DMRC), ready doubled in three years from about and prime consultant to HMRP until re- Rs 6,000 crore to over Rs 12,000 crore dur- cently, E Sree dharan, thinks so. He made ing 2005-08. It is also likely to face many several such scathing remarks in a letter hurdles in land acquisition, litigations, to Deputy Chairman of the Planning Com- and traffic problems, etc. With all these mission, Montek Singh Ahluwalia, on 11 factors likely to lead to about 50% cost September 2008 and even more explicitly escalation in the coming years, the in another article later (Sreedharan 2008). project cost may reach upwards of Shaken by the exposure from its own con- Rs 18,000 crore and may well rise from sultant, the HMRP officials reacted strong- the estimated Rs 171 crore now to Rs 250 ly and also in a belittling manner, crore per km. This project has been touted d emanded unconditional apology, and as the biggest private-public partnership threatened to file a defamation suit. Sreed- (PPP) in India though practically it has haran refused to apologise. The DMRC and now become a totally private funded government of Andhra Pradesh (GoAP) project. This is probably the largest infra- parted ways. structure project ever undertaken in C Ramachandraiah ([email protected]) Sreedharan was reacting to a major policy H yderabad’s history. is with the Centre for Economic and Social shift in the government of India (GoI) to It will result in large-scale demolition of Studies, Hyderabad. He is also with the operationalise all future urban metro projects buildings, including of the State Archives, Citizens for a Better Public Transport under the build-operate-transfer (BOT) and defacement of historic heritage pre- in Hyderabad. model solely under the private sector. It cincts on a scale the city has never 36 january 17, 2009 EPW Economic & Political Weekly INSIGHT w itnessed before. In the next section some HMR authorities. The faculty in the depart- day and night times, respectively. Lakhs of serious concerns on the implications of ments of transport engineering, Jawahar- middle class people are living close by on this project are discussed. The third lal Nehru Technological University, Hydera- either side of the proposed routes. Simi- s ection deals with the selection of the bad, and National Institute of Technology, larly, silence zone areas like hospitals and b idder and Sreedharan’s objections. Cer- Warangal were totally excluded in conduct- educational institutions where the pre- tain features of the concession agreement ing studies for this project.3 scribed noise levels are 50dB(A) during are dealt with in Section 4 followed by the day and 45dB(A) at night will cause concluding remarks in the last section. 2.2 Security and Heritage s erious disturbances. Even in industrial Line-1 will pass by the Andhra Pradesh areas the maximum permissible noise 2 Project Issues Secretariat and Legislative Assembly l evel is 75dB(A) during day time.7 The This section discusses some of the major buildings with the rail corridor at 45 ft “stringent noise standards mandated” to implications of the project. along with two stations which are likely the BOT developer are also not in conform- pose a serious security risk. In Delhi, the ity with the noise standards of Central 2.1 No Transparency elevated metro rail goes underground Pollution Control Board (CPCB): 60dB(A) Till the bidder was selected in late July near the Central Secretariat (and in Luty- for hospital zones, 50-70 dB(A) for resi- 2008, the HMR officials refused to provide ens Delhi) due to security concerns and dential areas, and 75 dB(A) for business detailed project reports (DPRs) even under the need to protect the heritage. It was felt and commercial areas (Counter Affidavit the Right to Information (RTI) Act, 2005 there that an elevated corridor would have 18483 of 2008). There are about 320 places on the ground that they contain informa- marred the beauty of the city. Keeping in (51 schools, 96 colleges, 118 hospitals, 54 tion which have high commercial value view the ancient monuments of heritage religious places, and the Secunderabad and that “the BOT tender process is still value between the Central Secretariat and Courts and AP Judicial Academy all falling on”.1 Several applications made under the Mehrauli, in Delhi the metro has been in the silence zone category on either side RTI Act by different applicants have not taken underground.4 The two corridors of of the three metro routes.8 They also in- even been replied to before the bidding the elevated metro rail in Bangalore are clude some of the most important public was over. The officials have refused to going underground for 6.76 km near the hospitals and educational and research share information despite several de- areas around Vidhana Soudha, which too i nstitutions in Hyderabad like the Nizam mands made by political parties, intellec- is of high heritage and of historic impor- Institute of Medical Sciences, Gandhi tuals and civil society groups to get the tance.5 The DMRC prepared DPRs for the Medical College and Hospital, O smania documents and initiate an informed Bangalore metro. Heritage buildings re- Medical College, Vivek Vardhini College, d ebate. Information was provided selec- present and remind residents of the past Government Maternity Hospital, etc. The tively after the bidding was over. A public history, culture, architecture and political elevated metro rail will run within 20-30 interest litigation was filed in August 2008 systems. Hyderabad has a number of her- metres in many areas, sometimes as close in the High Court of Andhra Pradesh (Writ itage buildings. The metro corridors are as 10-15 metres, from buildings in some of Petition No 18483 of 2008). going to deface about 27 of the 137 listed the thickly populated areas. The Noise The HMRP is taken up under the Andhra heritage precincts of the city. Further, they Pollution (Regulation and Control) Rules, Pradesh Municipal Tramways (Construc- are also going to affect about 44 buildings 2000 of the CPCB are applicable up to 100 tion, Operation and Maintenance) Ordi- that are identified as having potential metres. The high levels of permissible nance, 2008 (now an Act). As per Section/ h eritage value. 6 The pedestrian shopping noise by HMRP violate the existing subsections 3 and 4 of this Act, upon re- areas and historical landmarks like Sultan laws on noise and adversely affect the ceiving a request from a municipality, the Bazar and Badi Chawdi will have to be quality of environment and hence the GoAP should publish an order/notice in- d emolished in a big way for metro rail right to life.
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