Centre approves Hyderabad Metro Rail project

By Staff
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Google Oneindia News

Hyderabad, May 3 (UNI) The Centre has approved the Hyderabad Metro Rail project as eligible for financial assistance under the Viability Gap Funding (VGF) scheme.

In a meeting held in New Delhi two days ago, the Empowered Institution chaired by Finance Additional Secretary Khullar and attended by Planning Commission Advisor Gajendra Haldea approved the Hyderabad Metro Rail project for a total cost of Rs 8,482 crore.

Centre's financial assistance of Rs 1,639 crore included only 20 per cent of the project cost.

During the discussions, it was indicated that the Centre could consider more grant. With 60 per cent of the project cost being raised by the private BOT (Build Operate and Transfer) developer, the remaining grant portion would be contributed by Government of Andhra Pradesh.

The Managing Director designate N V S Reddy, in a statement said with the project getting clearance from Centre, technical bids would be invited in the next few days from the five international consortia which had prequalified for building the metro rail system in Hyderabad.

The technical bids would be evaluated on 'pass or fail' basis with the help of the two technical consultants, namely Span-Semaly of France and Delhi Metro Rail Corporation. The offers of the bidders would have to conform to stringent technical specifications, international safety standards and performance levels should get qualified at the technical bid stage.

Thereafter, financial bids would be invited from those bidders who got qualified. The project would be entrusted to the consortium, which would seek the least financial support from government in the form of VGF.

All the three routes of 66 kms would be given as a single package to only one developer, which would have to build the system within five years and could run it for 30 years. The developer had to handover all the assets and project facilities back to the state government after the 30 year period.

Hyderabad Metro Rail (HMR) Ltd, a special purpose vehicle being set up by Andhra Pradesh government, would monitor the implementation of the project and would act as a single point agency to coordinate various government departments and agencies for land acquisition and shifting of utilities.

UNI

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