The country’s biggest public-private partnership project (PPP), the ?16,375-crore L&T Metro Rail Hyderabad, is likely to see delay in implementation of the 71-km elevated metro rail, as also faces cost-overrun.
Proposed to be ready by July 2017, the project is likely to be ready by December 2018, on completion of all the three metro segments.
Even the proposed commissioning of two stretches, Nagole to Mettuguda (8 km) and Miyapur to SR Nagar (11 km) of completed rail network, to be launched on the June 2, 2016, coinciding with the Telangana State formation, is unlikely as several mandatory clearances are yet to be secured.
The project seeks to connect three corridors of Nagole to Hitec City, Miyapur to Dilsukhnagar and Mahatma Gandhi Bus Stand to Falaknuma.
Addressing a press conference, senior management of L&T expressed the hope that the project execution pace would pick up once the clearances are received. They said it would not be possible to peg the increased cost at this point as they need to factor in various external issues and delays.
J Ravikumar, Chief Financial Officer of LTMRHL, said they had invested about ?9,000 crore out of ?16,375 crore. This includes ?2,700 crore equity, ?600 crore from VGF and the rest is debt.
SN Subrahmanyam, Deputy Managing Director and President, L&T, and Chairman of L&T Metro Rail (Hyderabad) Ltd, said, “As a concessionaire, L&T has been executing the project on behalf of the Telangana government. Most of the hurdles have been crossed, while some are being sorted out. Once that is done, we will be able to expedite the project.”
Asked if the project will head for arbitration given the delay and cost escalation potential, he described the metro project as a greenfield project in brownfield congested city area.
“This is one of the most complex and largest projects taken up in the PPP mode where L&T has made its biggest investments. We have cordial relations with the government and are confident that the project will be implemented as early as possible,” he said.
VB Gadgil, Chief Executive of L&T Hyderabad Metro Rail, said, “Nowhere in the world, a metro rail project has managed to cover so much in terms of development within three-and-a-half years in spite of the hurdles it faces. There continue to be several issues to be resolved including right of way and acquisition of some key properties.”
On the third corridor which passes through Old City, Gadgil said, “We are yet to hear from the government on the progress of acquisitions and right of way.” Luc Robitaille Womens JerseyShare This