Nava Bharat Venture and Maytas Infra-led consortium has finally became the L1 bidder for the Rs 11,814 crore Hyderabad Metro Rail project, according to NVS Reddy, managing director of the company.
?The officers? committee has submitted its report to the state government for its final approval. We hope to issue letter of approval (LoA) in the next 10 days,? Reddy said. There after, the company has to announce the financial closure in the next six months, he added.
Announcing the three-member committee decision to the media, Reddy said it had considered all the pros and cons including legal options before finalising the bid. ?We have taken all the precautions including expert opinions on legal, technology and financial aspects, before finalising the bids,? Reddy said.
While GVK-led consortium had backed out after qualifying in the technical round, the remaining four bidders?Nava Bharat, Magna Allmore, Reliance, and Essar?have participated in the financial bids for the metro rail project.
Interestingly, the Nava Bharat-led consortium has agreed to pay Rs 30,311 crore to the government during the concession period of 34 years, while Magna Allmore had agreed to pay Rs 250 crore to the government towards equity in the SPV company.
However, the two other bidders–Reliance had sought a grant of Rs 2,811 crore from the government and Essar had asked a grant of Rs 3,100 crore. Hence, the committee had finalised the bid in favour of the Nava Bharat consortium after satisfying in other areas such as legal etc, Reddy clarified.
Considering cost escalation due to delay, the state government had revised the project to Rs 12,410 crore as against Rs 9,696 crore in November 2007. However, the Centre had limited the cost at Rs 11,814 crore while disagreeing to the state charges.
Metro rail is proposed on three routes?Miyapur to LB Nagar covering 29.87 km connecting 27 stations, Secunderabad to Falaknuma covering 14.78 km connecting 16 stations and Nagole to Shilparamam covering 26.51 km connecting 23 stations?with 66 stations and 71.16 km of track. The project is expected to be operational by 2011 as per the revised schedule.