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Our Bureau

Hyderabad, Feb. 10 The fate of the Rs 12,132-crore Hyderabad Metro rail project awarded to the Maytas Infra-led consortium will be decided based on whether it manages to achieve financial closure in the stipulated time, that is within six months of signing the agreement.

“If they do not manage to achieve financial closure by next month, their contract will be cancelled,” Dr Y.S. Rajasekhara Reddy, Andhra Pradesh Chief Minister, said.

Speaking on the Hyderabad metro project, Dr Reddy said the project was awarded to Maytas Infra, Nava Bharat, IL&FS and Ital Thai consortium amidst stiff global competition. The Maytas bid was chosen as it sought no viability gap funding and in fact was paying money to the State.

Refuting the criticism of Mr E. Sridharan of Delhi metro rail, on the award of contract to Maytas Infra basing the project success on development of land bank along with the rail project, Dr Reddy said that the project was unique and this model is untested. The project had come in for praise even by the Deputy Chairman of Planning Commission, who wrote a letter to the Prime Minister about its different approach, he said.

The State Government is monitoring the progress of various projects currently being executed by Maytas Infra.

“To protect the interests of State, we will monitor progress of various projects and take appropriate measures. If the State cancels a project contract, it has to pay compensation as per contract terms. On the contrary, if the company fails to meet its obligations as per deadlines, it forfeits its deposits,” he said.

More Stories on : Railways | Andhra Pradesh

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