L&T wins Hyderabad Metro Rail project
14 Jul 2010
Mumbai-headquartered engineering and construction major Larsen and Toubro (L&T) has won the Rs12,132-crore Hyderabad Metro Rail (HMR) project.
The engineering and construction giant was selected by a three-member committe from six companies that had bid for the mega project, which was initially awarded to Maytas Infra in 2008.
The project was re-tendered last year after the authorities scrapped the Maytas deal as the sister-concern of scam-hit Satyam Computer Services failed to achieve financial closure. (See: Maytas Infra may be out of metro rail project)
Eight consortia had qualified to for the financial bids including consortia led by Reliance Infrastrucure, Lanco Infratech, GVK, GMR, L&T, Soma-Starburg, Transstroy and Essar group.
GVK and GMR withdrew without submission of financial bids and according to reports they were apprehensive of the financial viability of the project under the changed circumstances.
The 71.6 km-long elevated metro rail project will be executed under public private partnership on design, build, finance, operate and transfer (DBFOT) basis.
The work on the project is expected to be taken up starting October and the entire project is expected to be completed in four years.
The Maytas-led consortium that had bagged the project in 2008 forfeited the Rs71 crore performance guarantee it had deposited as advance towards Rs30,311 core it agreed to pay to the government over the 35 year concession period.