Navabharat-led consortia to build Hyderabad metro project

Navabharat-led consortia to build Hyderabad metro project

Monday, 28 July 2008, 07:00 Hrs
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Hyderabad: A consortium led by Navabharat Ventures is all set to bag the order to build and operate the elevated metro rail system here, a top metro rail official said.

A three member committee constituted by the government to chose the bidder has recommended that the Navabharat-led consortium be awarded the Build, Operate and Transfer (BOT) contract for the 121 billion project, N.V.S. Reddy, managing director, Hyderabad Metro Rail, told.

The consortium led by the Hyderabad-based company turned out to be the lowest bidder for the project when the bids from five consortia were examined last week, he said adding that the consortium had agreed to pay 303 billion to the government during the 34-years-long concession period of the project.

The consortium includes another Hyderabad-based firm Maytas Infra Ltd., a Thailand-based firm ItalThai (ITD Thailand) and the Indian financing company IL&FS, Reddy said.

"The government will finalize the name in a week or ten days and thereafter a letter of approval will be issued," he said.

The consortium is set to bag the project by not seeking any viability gap funding though the central and state governments had together offered 40 percent funding, he said.

Within 45 days of the issuance of the letter, the consortium will have to pay 600 million to sign the agreement, he said.

Four other consortia led by Reliance Energy, Magna Allmore (Malaysia), Essar Constructions and GVK were also in the fray, he said.

The project cost which was originally estimated at 96.96 billion, has now been revised to 121.32 billion, Reddy said.

The elevated rail system will be constructed on three corridors covering 71.16 km. The work is likely to begin in October this year, he said.

Officials said it would be the biggest metro project in the country which is being attempted on a public private partnership mode.
Source: IANS
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