The Hindu Business Line : `Right of way' for MRTS by August in Hyderabad

THE `Right of way' for the Rs 6,300-crore Mass Rapid Transit System (MRTS), which seeks to decongest three high-density traffic corridors in Hyderabad, will be provided by August this year.

"This will pave the way for the developer chosen through the bidding process to expedite the project implementation. Unlike other instances, we have made efforts to provide a clear right of way to ensure that the project is completed well within its stipulated period," said Mr N.V.S. Reddy, Director of the MRTS project.

Speaking to Business Line, Mr Reddy said: "In many instances, right of way is a major hurdle in project implementation and is among the factors that lead to cost overruns. Therefore, we have made arrangements to ensure right of way by August 2006, that is the time the chosen developer would have achieved financial closure."

He added: "The road widening in all major roads has been completed and the issues relating to buildings abutting these dense corridors have been sorted out.

Therefore, when the developer gets ready to take up work, he will have clear path. This is something that has enthused all major international bidders in the project."

Citing a World Bank study, Mr Reddy said: "Out of 80 metro projects, only three have been proved to be financially viable. Indian cities are no exception to this environment. Projects such as this are highly capital-intensive. Developers are comfortable when they get the right environment to work. They do not like to get bogged down in regulatory and legal issues and right of way is one such effort to help them."

The MRTS project being undertaken under build, operate and transfer (BOT) model seeks to traverse a stretch of 59 km. Six consortiums submitted expression of interest (EoI) for technical consultancy and bids of five of them were presented recently.

The project seeks to cover Miyapur to Chaitanyapuri (25 km), Tarnaka to Punjagutta to Hi-Tec City (20 km) and Secunderabad to Falaknuma (13 km).

The consultants will help the Government in the bid process management, negotiations, and financial closure. To ensure that the project is bankable, the Centre has assured to part-fund the project. Leading global players such as Singapore MRT, Siemens AG, ETA (Dubai), Bombardier, Metrail, Alstom, and Hitachi, along with Indian partners, are in race for the project implementation.

Even a right of way telecom cable was a big issue a few years ago. This is a major step towards early implementation of the metro project. The developer chosen is expected to conduct route and traffic studies and arrive at an appropriate revenue model.

This might take about four months. The Government is seeking to expedite the bidding and selection stages to ensure that the project construction could begin as by June.