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Wednesday, Jul 08, 2009
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Business Daily from THE HINDU group of publications Wednesday, Jul 08, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Infrastructure Logistics - Railways Government - Policy States - Andhra Pradesh Maytas-led consortium loses Hyderabad metro deal
The future course of action on how to go about the Rs 12,000-crore project will be taken at a high- power meeting scheduled for July 13. 
Our Bureau Hyderabad, July 7 The Andhra Pradesh Government today cancelled the Rs 12,132-crore Hyderabad metro rail project contract awarded to the Maytas Infra-led consortium for failing to meet contractual obligations, despite extension of time. Maytas may possibly lose the Rs 71 crore it has deposited with the State as caution deposit and token of prospective profits. The company had to achieve financial closure and deposit performance guarantee of Rs 240 crore by March 17. The Andhra Pradesh Urban Development Minister, Mr A. Ramnarayan Reddy, told reporters that the Government was forced to cancel the deal as Maytas failed to meet the contractual obligations in time. The Maytas consortium of Nava Bharat Ventures, Ital Thai and IL&FS, had secured the mandate to develop this project, bettering bids by Anil Dhirubhai Ambani Group, GVK, Essar and Nagarjuna. The Maytas bid to develop three corridors of 71 km was chosen as it offered to pay Rs 30,000 crore over 30 years, without seeking any viability gap funding. Its business plan was based on commercial exploitation of real estate. A decision on the future course of the project, already delayed, will be taken at a high-power meeting scheduled for July 13. The Managing Director of Delhi Metro, Dr E. Sridharan, had questioned this model of developing a large urban project basing on sale of real estate. Maytas Infra said Karnataka has decided to retain it as a developer of the greenfield airports at Gulbarga and Shimoga. Contract to Maytas Infra stayed AP too to probe into Satyam-Maytas nexus AP Govt studying Maytas’ capability to execute projects AP Govt may scrap Maytas-led Metro deal Maytas Infra seeks more time to close Hyderabad Metro finances AP to review Maytas Infra implementation of Hyderabad Metro More Stories on : Infrastructure | Railways | Policy | Andhra Pradesh
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