Maytas Infra-led consortium to develop Hyderabad Metro

Written by Infrastructure Bureau | Hyderabad, Augt 11 | Updated: Aug 12 2008, 09:42am hrs
The Andhra Pradesh government has formally issued the letter of award in favour of Maytas Infra-led consortium for undertaking the development of Hyderabad Metro Rail Project on design, build, finance, operate and transfer basis.

The consortium, Navabharat Ventures Limited, Maytas Infra Limited, Ital Thai Development Public Company Limited and Infrastructure Leasing and Financial Services Limited (NMII Consortium), will take up the metro project estimated to cost Rs 12,000 crore in Hyderabad.

The project has three lines totaling 71km, which include Miyapur to LB Nagar, a length of 30 Km, Jubiliee Bus Station to Falaknuma, a length of 15 Km, Nagole to Shilparamam, a length of 26 Km. Besides, the government is also extending the real estate development rights to the consortium for about 18.5 million sq. ft., the company said in a release.

Commenting on the development, Mohan Gurunath, ceo, Maytas Infra Assets said, we are in an era of massive infrastructure projects being developed across the country - projects that will have widespread impact and seek to change the way we do things, - the Metro is one such project. We needed to ensure that the collective experience and expertise in project management of the consortium partners to execute such projects.

The uniqueness of this consortium will be that, it has committed to pay to the state government, which has a net present value equal to Rs 1,240 crore over a 34-year period - based on a discount rate of 13.5%.

The concession agreement, to be entered between the consortium and state government, is based on an initial concession period of 35 years (including construction period) and a possible extension in concession period of 25 years, the release added.

The project is expected to be constructed over a five and half year development period, says the draft agreement.

The state government will contribute Rs 250 crore towards its equity of the company.