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| AP Cabinet approves metro rail project |
| BS Reporter / Chennai/ Hyderabad Aug 05, 2010, 00:24 IST |
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The Andhra Pradesh Cabinet on Wednesday decided to award the Rs 12,132-crore Hyderabad Metro Rail project to the lowest bidder - L&T.
The company had sought Rs 1,458 crore as viability gap funding (VGF), which would be paid by the Centre. The project would be implemented on a design, build, operate, finance and transfer (DBFOT) basis in public private partnership.
However, the Andhra Pradesh government would incur an expenditure of Rs 1,980 crore towards acquisition of 204 acre private land, shifting of utilities, relief and rehabilitation, structural compensation, reconstruction of structures on government properties near stations and improvement of alternative roads for facilitating smooth flow of traffic during construction. Any increase in the project cost would be borne by the concessionaire.
The Cabinet, which also sanctioned this expenditure, has decided to release Rs 500 crore out of this in the current financial year.
While six pre-qualified companies purchased the bid documents only three participated in the financial bids. Each had deposited a bid security of Rs 240 crore. The Transstroy-led consortium sought Rs 2,200 crore and Reliance consortium sought Rs 2,991 crore.
The metro rail will come up on three high-density traffic corridors — Miyapur-LB Nagar (28.87 km), JBS-Falaknuma (14.78 km) and Nagole-Shilparamam (27.51 km). The concession period is for 35 years, including the five-year construction period, with a provision of extension for another 25 years.
The traffic is estimated to be 1.5 million passengers per day in 2014 and 2.2 million in 2024. L& T can undertake real estate development of up to 18.5 million sft through utilisation of air space over the 269 acre earmarked for the metro rail facilities at its cost.
However, the ownership of land and assets will remain with the government and the concessionaire cannot sell the developed assets.
The project is designed for two minutes frequency but trains initially would run with three to five minutes frequency. The project would have an automatic fare collection system with smart cards and other devices (minimum Rs 8 and maximum Rs 19 in 2014).
The concessionaire should pay 0.5 per cent of the realisable fare net of taxes to the government from the 21st year onwards and increase it additionally 0.5 per cent every year, subject to a ceiling of 10 per cent.
L&T will have to form a special purpose vehicle to implement the project and enter into a concession agreement with the government within one month after the Letter of Award (LoA).
It should provide bank guarantee for Rs 360 crore as performance security and achieve financial closure within six months. Ground work on the project is scheduled to commence in January 2011.
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