Hyderabad: Larsen & Toubro (L&T), the engineering and construction conglomerate, which built the Hyderabad Metro Rail is not the automatic choice to build the Airport Express Metro project.
The proposed 31-km high-speed metro rail project will be executed by Hyderabad Airport Metro Limited, as the Telangana government has decided to implement it as a state -owned project in line with Chief Minister K. Chandrasekhar Rao's vision of making Hyderabad a global city.
A HAML official said that they would float fresh tenders for the project, but that this would be a lengthy process. "L&T has no role in the Airport Express Metro; the project would be executed by HAML," the official told Deccan Chronicle.
Asked about the development, L&T sources said that the firm was unhappy with the current project, especially pertaining to the finances. Sources said that L&T would participate in the tender process. If selected, they would only limit themselves to the construction of the project.
Senior L&T officials refused to comment not only on the Miyapur-Lakdikapul and Nagole-LB Nagar projects which are part of the Hyderabad Metro Rail Phase-II but also on their participation in the Airport Express Metro project.
Hyderabad Metro Rail Limited (HMRL) managing director, N.V.S Reddy said that the L&T had no role to play in the Airport Express Metro project and that it was a completely a state-owned project.
He said: "The ORR has a dedicated Metro Rail right of way (RoW), and the Airport Express Metro corridor will connect to the Rajiv Gandhi International Airport at Shamshabad via this dedicated RoW. This corridor, which spans 31 kilometres, is expected to cost around `6,250 crore. Several large global and national corporations have established or are establishing massive campuses along this stretch,” explained N.V.S. Reddy.
A large number of commercial and residential high-rise buildings with world-class amenities are being built near this corridor, he pointed out.
The HMRL MD said All major cities had Metro Rail connections to their airports. With cutting-edge technology, passenger amenities and conveniences, this project would play an important role in establishing Hyderabad as an appealing global investment destination, he added.
The Hyderabad Metro Rail Project was awarded to L&T by the then government of undivided Andhra Pradesh. L&T set up a special purpose vehicle (SPV) called L&T Metro Rail (Hyderabad) Limited to build the project on a design, build, finance, operate and transfer (DBFOT) basis.
On September 4, 2010, the company signed the concession agreement with the then AP government, and financial closure was completed on March 1, 2011. A consortium of 10 banks led by State Bank of India sanctioned the debt requirement of the project. This is the country's largest fund tie-up for a non-power infrastructure public private partnership (PPP).
