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L&T Metro Rail (Hyderabad) Ltd will finalise vendors for rolling stock and signalling equipment by June.
Operations and maintenance contractors will also be finalised by then.
The process was delayed due to difficulties in land acquisition for the project.
“We are at an advanced stage of finalising these vendors and suppliers. There is heightened interest in the Rs 16,375-crore project,” said Mr Vivek B. Gadgil, Chief Executive and Managing Director of L&T Metro Rail.
“Suppliers from across the world are keenly watching the progress of this PPP project and looking at taking part in its progress.
“At least four major vendors, including Canadian supplier of rolling stock, Bombardier, a Spanish firm, China CSR Corporation and the BEML-Rotem consortium are in fray for the Rs 1,800-crore deal,” he pointed out.
Transit Development
The company plans to execute Transit-Oriented Development along the corridor, and ensure connectivity through multiple modes of transport. Initially, six million sq ft of mixed use space would be taken up.
L&T has expressed confidence that it would be able to execute the project as per schedule while ensuring that there is no cost overrun. The project has an equity component of Rs 3,439 crore, viability gap funding of Rs 1,458 crore from the Centre and a term loan component of Rs 11,478 crore.
“Thus far, we have invested Rs 500 crore all of it being L&T's equity contribution.
“We have not yet accessed any funds from banks and financial institutions.
“The last few quarters have seen high interest rates. But, after financial closure in March last year, the rates seem to be softening,” he said.
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