Consortium receives letter of award for Hyderabad Metro

August 11th, 2008 - 11:08 pm ICT by IANS  

Hyderabad, Aug 11 (IANS) A consortium of companies Monday received a letter of award from Andhra Pradesh government for development of Hyderabad Metro rail project. The consortium comprising Navabharat Ventures Limited, Maytas Infra Limited, Ital Thai Development Public Company Limited and Infrastructure Leasing and Financial Services Limited.

Maytas Infra Limited, a Hyderabad-based construction and infrastructure development company, in a statement here said the state government has awarded the concession for undertaking the development of Hyderabad Metro rail project on design, build, finance, operate and transfer (DBFOT) basis.

The Rs.120-billion project will comprise three lines totalling 71 km. The state government is also providing real estate development rights to the consortium for 18.5 million square feet.

The consortium will be paying to Rs.12.40 billion to the state government over 34-year period based on a discount rate of 13.5 percent.

The concession agreement to be entered into between the state government and consortium is based on an initial concession period of 35 years and a possible extension in concession period of 25 years. As per the draft concession agreement the project has to be constructed over a five and a half years development period.

The statement said the state government would subscribe to equity of Rs.2.50 billion. The consortium is looking at various financing options.

“We are very proud of the fact that we have been chosen amongst several global players to execute this project,” said Mohan Gurunath, CEO, Maytas Infra.

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