AP Govt scraps Hyderabad Metro project

Sreenivas Janyala
Posted: Tuesday, Jul 07, 2009 at 1252 hrs IST
Updated: Tuesday, Jul 07, 2009 at 1252 hrs IST

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Hyderabad: Andhra Pradesh Government scrapped the Rs 12,000 crore Hyderabad Metro Rail Project on Tuesday. Minister of Municipal Administration and Urban Development Anam Rama Narayana Reddy said that a Cabinet meeting would be held on July 13 to decide whether to go for global re-tendering. “For now the project is scrapped. A consortium led by Maytas Infrastructure which was awarded the contract is unable to start the project for various reasons. Other consortia are not interested in taking up the project so we are terminating the contract with Maytas and scrapping the project for the time-being. All agreements between Maytas and government now stand cancelled,” the Minister said on Tuesday.

Maytas Infra is the family firm of disgraced Satyam founder B Ramalinga Raju, and is headed by his son B Teja Raju. Maytas, and Hyderabad Metro Rail Project, ran into trouble after B Ramalinga Raju admitted to fraud on January 7 this year.

Maytas Infra was unable to achieve financial closure in March and, as per the agreement providing for a 180-day extension, sought that much time from the state Government. But the state government did not take a decision on that till on Tuesday.

Last August, a Maytas-led consortium had bagged the Rs 12,132 crore project with an innovative business model that not only refused any assistance from the government to execute the project but also proposed to pay the government Rs 30,311 crores in three instalments by the end of the 33 years lease period.

Maytas Infra hoped to generate revenues from the 1 million square feet of virtual space that was available to it along the metro rail including depots and stations. With 26 per cent stake, Maytas’ consortium partners are the city-based Nava Bharat Ventures Ltd with 16 per cent stake, Infrastructure Leasing and Financial Services Ltd (ILFS) and Thailand’s Italian-Thai Development Public Co. Ltd, both having five per cent each. The state government has an 11 per cent stake. The project was supposed to be grounded within six months of the contract being awarded.

Last week, Maytas made a desperate bid to rope in new partners by approaching Anil Ambani’s Reliance Infra but did not receive any response.

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» Copy right ?

Posted by RR Mulugu on 2009-08-08 12:15:36.233321+05:30
Who is copying whose song (or a portion of it) / tune ? The line in question is 'Yem pillado yeldha mosthava...'. Who has authored it ? Certainly not Vangapandu ! He himself says that he has written it in 1972. I remember humming the song in our villages in Prakasam District in late 50s onwards. This particular song which runs 'YEM PILLO YELDHA MOSTHAVAA', is sung by folklore during celebrations/festivals in nearby towns(called Tirunalla/santha) Vangapandu has picked up these lines along with the tune from folklore which were highly popular by that time and created a similar song to propagate his ideology. But he has uplifted the beginning lines(pallavi)and the tune as it is..This being the case, how can he claims authorship over such songs/tunes ? Like manasaa, chalmohan ranga, dingari, hailesa....songs which were extreemly popular are used by the leaders of the people's movements to spread their ideology powerfully to the rural masses. Even Kosaraju used many such songs, tune

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» All have got their share

Posted by KUMAR on 2009-07-07 16:19:02.679918+05:30
The Chief Minister of Andhra Pradesh and his cabinet has been taken care of by Mayatas all have made their money and the next elections is five years away so what is the hurry in implementing the Metro Rail project the people of A.P also not bothered .The project will get another life by 2014????

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» Elections are over

Posted by Devendra Patel on 2009-07-07 15:10:46.851654+05:30
Now elections are over, purpose is served then why to unnecessary spend money on infrastrcture. Better to give those money to party's coffer.

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» All have eaten their cake share

Posted by kumar on 2009-07-07 13:40:05.895359+05:30
All have eaten their cake share - Raju is only mada scape goat Sreedharan clearly warned of the business model proposed and he got a kick from YSR

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