The Hindu Business Line : AP Govt, Delhi Metro agree to terminate deal

Hyderabad, Sept. 23 The Andhra Pradesh Government and Delhi Metro Rail Corporation Ltd (DMRC) have decided to mutually part ways in the ambitious Rs 12,132-crore Hyderabad Metro Rail Project (HMR).

The decision is a fallout of the critical observations made by the DMRC Chief, Dr E. Sreedharan, on the HMR to the Planning Commission and the reactions from the State Government in the last few days. DMRC, according to the original agreement, was offering prime consultancy services to the Andhra Pradesh Government on the HMR project, according to Mr N.V.S. Reddy, Managing Director of HMR.

Right from the beginning, DMRC was involved in the preparation of the RFP documents, tender documents, attended committee meetings and was even instrumental in the tender finalisation.

According to the agreement, the State Government was to pay Rs 20 crore to DMRC as consultancy services, out of which Rs 4 crore has already been paid.

Exiting prematurely

With the present development, DMRC which should have been an adviser to HMR till the project completion will be exiting prematurely.

The Maytas Infra-Nav Bharat led consortia had bagged the HMR project with a novel bid, in which it had refused viability gap funding from the Centre and in return offered to pay back the State Government around Rs 30,311 crore during the concession period of 35 years.

The DMRC Chief had in his letter to the Planning Commission raised issues on the project and asked for exercising caution that the example of Hyderabad Metro was quite misleading as a negative viability gap funding.

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