L&T achieves financial closure for Hyderabad Metrorail

Larsen & Toubro Metro Rail (Hyderabad) Limited, a subsidiary and a special purpose vehicle of the L&T Infrastructure Development Projects, has achieved financial closure for the Rs 12,132-crore Hyderabad metro rail project.

A consortium of 10 banks led by SBI has sanctioned the entire debt requirement of Rs 11,480 crore and the equity component of around Rs 3,440 crore would be infused by the L&T group for the project, according to a company release today.

The project would get a viability gap grant of Rs 1,458 crore from the central government through the state, it said.

The financial closure of the largest public private partnership project under design, built, finance, operate and transfer (Dbfot) mode in the country till date, has been achieved within six months of signing the project agreement. L&T signed the concession agreement with the government of Andhra Pradesh on September 4, 2010.

L&T Metro Rail (Hyderabad) Ltd has already submitted a performance guarantee of Rs 360 crore to the state government.

The pre-construction works of the project has already started, and the soil testing and topographical surveys have been completed in most locations along the alignment and conceptual engineering is near to completion.

As per the agreement, construction would have to be completed in five years and the concession period for the project is 35 years (including 5 years of construction) and is extendable by an additional 25 years.