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Mumbai, Apr 5 L&T Metro Rail (Hyderabad) Ltd, the special purpose vehicle incorporated to implement Hyderabad Metro on Tuesday said it has achieved financial closure for the project in a record time of six months.
A consortium of banks led by State Bank of India has sanctioned the entire debt requirement of Rs 11,480 crore for the project. The equity component, expected to be around Rs 3,440 crore, would be infused primarily by L&T Group, the company said in a statement.
It is the largest fund tie-up in India for a PPP (Public Private Partnership) project till date. The project will get a viability gap grant of Rs 1,458 crore from the Central Government through Government of Andhra Pradesh.
The project will be set up under the Design, Built, Finance, Operate and Transfer (DBFOT) basis.
L&T emerged as the lowest bidder in face of stiff competition and signed the Concession Agreement through its SPV, L&T Metro Rail (Hyderabad) Limited, with the Government of Andhra Pradesh (GoAP) in September last year.
It is one of the biggest PPP contracts in metro sector in the world involving the construction of 71.16 km of elevated metro rail in three corridors criss-crossing the city of Hyderabad.
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