HMRL board to meet tomorrow to award metro project
16 Jul 2010
Hyderabad Metro Rail Limited (HMRL) board is meeting today 16 July to recommend the award of the Rs12,132-crore metro rail project to infrastructure giant Larsen & Toubro.
The successful bidder will be formally approved at the meeting of the HMRL board headed by chairman and principal secretary chief minister's office C V S K Sarma and another committee appointed by the state government headed by by HMR managing director N V S Reddy.
According to HMR sources though financial bids (request for proposal) for the metro rail project were opened on Thursday, the recommendation for the award of the project would be sent only after documents are verified by Deloitte India, financial consultant engaged by HMR. The verification is expected to be completed by Friday. The HMR appointed Deloitte India as consultant last year to help the government in verification of bid documents as also to act as transaction advisor.
According to an HMR official, the state government will give its assent based on the recommendations of the after the bid documents submitted by L&T have been approved. The successful bidder would be given the Letter of Award in a week he added.
According to analysts in the event of the company winning the contract it would have to bring in about Rs3000-4000 crore, which is the typical equity component in such projects.
In another development, union minister for urban development S Jaipal Reddy said in Hyderabad yesterday that work on the project would begin in January next year.
Speaking to reporters he said the foundation stone for the Rs 12,132 crore project would be laid in January and the project would take around five years for completion.
The all-AC Metro Rail would run on three high traffic-density corridors and have 66 railway stations in all on three routes - Miyapur to LB Nagar (29.87 km), Jubliee Bus Station to Falaknuma (14.78 km) Nagole to Shilparamam (26.51 km).