The Andhra Pradesh government has signed a concession agreement with Maytas Metro Ltd, the concessionaire company for implementing the metro project in Hyderabad, on Friday. The agreement was signed between B Teja Raju, managing director of Maytas Metro and CVSK Sarma, principal secretary AP government in the presence of AP chief minister YS Rajasekhara Reddy.
The concessionaire company has paid Rs 11 crore to the state government as per its commitment. Further, the company is expected to pay Rs 30,311 crore to the state government over the concession period of 35 years as per the promise it had made during the bidding process.
Speaking on the occasion, Reddy said this is a unique project where the government is receiving money as against it has to incur viability funding to the tune of Rs 2,300 crore, which the Centre had already approved.
The elevated metro rail system will be built under ?AP Municipal Tramways (construction, operation & maintenance) Ordinance 2008?. The cost of the project is estimated to be Rs 12,132 crore for establishing metro rail system on three corridors covering 71 km. In order to establish stations at 33 locations across, the concessionaire company was allotted about 269 acres.
Further it is allowed to develop real estate across the rail system on its own cost and can rent-out the premises. However, at the end of concession period the developer has to transfer the developed property including metro rail assets.