L&T Metro Rail Hyderabad Limited and the Telangana Government are on a collision course regarding the ₹14, 132 crore metro rail project, with the former even suggesting that the State take over the project.

Contending that the project viability is being challenged by delays in securing clearances having a huge impact on the project financial viability, the construction major has even offered to withdraw from the project if issues were not sorted in a communication dated September 10.

Huge overrun The There have been a series of communications between L&T and both undivided AP and Telangana over the past few months. In February, L&T even wanted to part with its equity and function as a construction partner.

CE & MD of L&TMRHL, VB Gadgil, in the latest letter said without prejudice to the rights available to the concessionaire under the law, since the completion of the project is in public interest, it would be most appropriate that the State Government take over the project and under laying contract from the Concessionaire.

It further said, “The GoT should do so by restituting the Concessionaire in a manner whereby the Concessionaire’s property and entitlements are returned. We remain open to an amicable resolution of the concerns and issues raised by us.”

The project, including the State Government contribution of about ₹2,000 crore, faces a huge cost overrun due to inflation and high interest rates, which could go up to over ₹2,500 crore on the project. Each day’s delay adds to cost escalation.

Review However, following a review meeting held by Chief Minister K Chandrasekhar Rao and State Chief Secretary Rajeev Sharma and other top officials, separate statements have been issued by L&T and the State Government about their keenness to implement the project as per schedule.

A communication from the Chief Minister’s Office said that a team of officials headed by State Chief Secretary will go to Delhi and meet Central Government officials and also metro rail expert E Sridharan. Gadgil reiterated the company’s commitment to complete the project as per schedule.

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