Business Daily from THE HINDU group of publications
Sunday, Jan 21, 2007
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Business Daily from THE HINDU group of publications Sunday, Jan 21, 2007 ePaper |
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Industry & Economy
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Infrastructure Logistics - Railways States - Andhra Pradesh Rs 8,760-cr Hyderabad Metro gets Cabinet nod Our Bureau
The details Five leading consortia have been pre-qualified for the metro rail system. The authorised capital of the SPV will be Rs 1,000 crore with paid-up capital of Rs 100 crore. The project would get a concession period of 35 years, including five years during construction.
Five leading consortia have been pre-qualified for thesystem being pegged as the largest public-private partnership (PPP) project in the country. These include Essar Constructions, SREI, Singapore MRT; Magna Allmore, Siemens, Emirates Trading Agency, Nagarjuna Constructions; Reliance Bombardier; GVK, Gammon, Alsthom, IDFC; and Navbharat, Maytas, Italthai and IL&FS. Briefing presspersons after the Cabinet approval, the State Information Minister, Mr Mohammad Ali Shabbir, said that the SPV — Hyderabad Metro Rail Ltd - would implement the project on a fast-track mode through PPP under the build, operate and transfer mode. The authorised capital of the SPV will be Rs 1,000 crore with paid-up capital of Rs 100 crore. The project would get a concession period of 35 years, including five years during construction and later all the assets of the mass transit system would be transferred to the State Government. The project seeks to decongest three dense corridors through a stretch of 66.39 km metro rail line to be developed with an outlay of Rs 132 crore investment for a kilometre length. The Director of the Metro Project, Mr N.V.S. Reddy, said the technical and financial bids would get approvals from the Centre by February, followed by pre-bid conference and selection of the developer. Work is set to commence in June.
FUNDING
The project will be implemented under the Central Government's viability gap funding scheme wherein 20 per cent of the project cost will come from the Centre and up to 20 per cent from the State Government. In addition, the State Government will pick up 11 per cent stake in the equity capital of the SPV. The remaining project cost will be borne by the selected developer. Since MRTS projects are generally not financially viable, development of real estate will be allowed over the depots and next to about 33 of the 63 stations proposed, on the model followed in Singapore, Tokyo and Hong Kong. However, commercial property would be developed by the bidder from own funds outside the project cost. The State is drawing upon some of the successful initiatives of the Delhi Metro Rail Corporation.
More Stories on : Infrastructure | Railways | Andhra Pradesh
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