The Hindu Business Line : AP Cabinet approves Nava Bharat-Maytas bid

Hyderabad, Aug. 4 The Andhra Pradesh Cabinet has approved the Nava Bharat-Maytas consortium as the BOT (build-operate-transfer) developer for the Hyderabad Metro Rail Project.

The consortium was the lowest bidder for the Rs 12,132-crore project.

“The Cabinet has also approved the extension of the Metro Rail Corridor-III (Shilparamam-Habsiguda) by 4.77 km up to Nagole and also the Draft Concession Agreement (DCA) for the project,” Mr Anam Ramnarayan Reddy, Andhra Pradesh Information and Public Relations Minister, said after the Cabinet meeting here on Monday.

He added that the consortium was informed that though it had time to complete the project over the next five years, it must do so in four years so that the metro is operational by the beginning of 2011.

The Cabinet also gave its nod for the DCA which is based on the Central Government’s Model Concession Agreement.

Reservation for BCs

Mr Reddy said that it was decided to provide 33 per cent reservation to backward castes in Assembly and Legislative Council. “This is based on the recommendations of a Cabinet sub-committee. We hope that a unanimous resolution will be adopted in the Monsoon Session commencing shortly. After which we intend to send it to the Union Government for their approval,” he added.

The State Cabinet has also approved the additional loan of Rs 265 crore taken from the World Bank for the Andhra Pradesh Rural Poverty Reduction Project known at Indira Kranthi Patham.

“The project was scheduled to be closed by September 2008. However, now it will be continued till September 2009 to enable the Mandal Samakyas and village organisations to attain managerial and financial self sustainability,” he said.

The Council of Ministers also ratified a decision to adopt the Central Chit Fund Act, 1982 instead of the AP Chit Fund Act 1971.

“Since all the amendments proposed to the AP Chit Fund Act are contained in the Central Chit Fund Act, it was decided to bring this change,” he said.

According to him, if the Central Act is adopted, it will provide more security to subscribers and also provide 100 per cent security equal to chit while the State Act provides only 50 per cent security. It also provides only 40 per cent discount in the bid amount, while on the other hand there is no such provision in the State Act.

The Cabinet also decided to modify the Ordinance for establishing the Andhra Pradesh University of Law with headquarters in Visakhapatnam and campuses at Nizamabad and Kadapa.

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