Hyderabad races to meet Metro takeover deadline
HYDERABAD: The deadline for takeover of Phase I of the Hyderabad Metro Rail project is approaching, prompting officials to expedite fund mobilisation to clear pending liabilities.
Consultancies appointed to study various aspects of the takeover have accelerated their work and are preparing comprehensive reports. A Cabinet sub-committee set up by the state government is expected to receive a report shortly on available funding options.
As per the agreement, the government must pay ₹2,000 crore to L&T. It must also repay bank loans of ₹13,000 crore. The government has already stated that the management transfer will be completed before March 31.
L&T has stepped up pressure on the government to complete payments within the stipulated deadline and facilitate its exit from metro management. Officials have intensified efforts to mobilise funds, with continuous meetings at the HMRL office in Begumpet.
Consultancy studies in final stage
Officials said studies by consultancy firms appointed by the government are in the final stage.
IDBI Bank is examining financial transactions, HMRL assets and liabilities. The Delhi Metro Rail Corporation is studying operations across the three corridors, including train maintenance, technical systems, energy expenditure and staffing.
The takeover process will proceed based on reports from these two agencies.
The government may explore sale of about 249 acres of land, malls and other assets allocated for the metro project to repay loans. Officials indicated that Phase II is unlikely to receive approval and financial support from the Centre unless Phase I takeover is completed.
Under the agreement, the government will pay ₹2,000 crore to L&T and may provide guarantees for ₹13,000 crore in bank loans.
