हैदराबाद Hyderabad (HYD): Engineering and construction major L&T today announced it has achieved financial closure for the Rs.16,375-crore Hyderabad metro rail project, with a 10-bank consortium led by SBI pitching in with Rs.11,478 crore debt, meeting 70 per cent of the total cost.
The new project cost of Rs.16,375 crore, against the Rs.12,132-crore bid, includes Rs.14,132 crore for the 71-km metro rail system and Rs.2,243 crore for real estate component in phase one.
The project has a viability gap fund of Rs.1,458 crore (10 per cent). The Government had earlier frozen the project cost at Rs.12,132 crore.
The balance portion of the cost as per our estimates, including interest is being funded through equity and debt by L&T, according to Mr Venkatesh, Senior Vice-President, Finance, L&T.
“The enhanced cost will not impact the commuters as tariffs have been fixed,” he said.
Real estate component
The real estate (phase-1) cost of Rs.2,243 crore is being financed with an equity of Rs.671 crore (30 per cent) and debt of Rs.1,572 crore (70 per cent). The project allows 18.5 million sq.ft. of transit-oriented development.
Addressing a press conference, the Chairman of L&T Metro Rail (Hyderabad) Ltd, Mr Y.M.Deosthalee, described the metro project as “transformational, as it will change Hyderabad forever. We are associated with three other metro rail projects at Bangalore, Chennai and New Delhi, and expect to replicate the success here.”
Mr Vivek B. Gadgil, Chief Executive and Managing Director, said “This is amongst the largest public private partnership projects in the country. We will engage a specialist global operations and maintenance (O&M) company to partner us even during the construction phase. We have already inducted Aecom-Feedback Ventures consortium for conceptual engineering work.”
First phase will take 36 to 42 months for implementation.
On its part, the Government has appointed Louis Berger Consulting of US as independent engineer.
The Managing Director of HMRL, Mr N.V.S. Reddy, said “The Government would ensure that there is no problem in land acquisition and right of way for the project. Traders in small stretches in the city would be compensated and the land provided for metro implementation. Likewise, farmers would be provided developed land of 1,000 sq. yards for one acre of land they forego.”
He maintained that there was no need for environmental hearing for the project, as demanded by some sections.