Hyderabad Metro Rail Infrastructure Project gets rolling

Ministry of Finance is reported to have agreed in principle to extend funds (around Rs.2000 Crores) for Hyderabad Metro Rail Project to be built at an estimated to cost in excess of Rs. 10000 Crores. Many bidders, including a consortium of Reliance Energy Limited (REL) and Canadian company Bombardier, are pre-qualified for the project and technical bids may soon be evaluated.

Hyderabad Mass Rapid Transit System (or MRTS) is recommended by the Empowered Committee and Empowered Institution for viability gap funding (VGF), though final approval will require the consent of Finance Minister as per finance ministry sources. Once approved, the funds can be released to the AP Government in a phased manner to implement the ambitious project.

State government will sanction the fund to the bidder that agrees to implement the project with minimum viability gap funding. However, the maximum VGF would be 20% of the total project cost. Finance Ministry had asked the Andhra Pradesh government to revise the project to ensure the provision of bidding as per the government guidelines, the sources added.

An Empowered Committee comprising of Secretary {Economic Affairs), Secretary (Planning Commission) Secretary (Expenditure) has approved the project. Hyderabad Metro Rail Project, to be implemented on the pattern of Delhi Metro Project and will involve development of three elevated corridor of total length of 67 km with real estate rights along the corridor.

Reference Sources: www.business-standard.com
and www.economictimes.indiatimes.com