AP signs pact with L&T Hyd Metro Rail

The Andhra Pradesh government on Saturday signed a concession agreement with L&T Hyderabad Metro Rail Private Limited, the special purpose vehicle for the development of the Rs 12,132-crore Hyderabad Metro Rail (L&T HMR) project, under the public-private partnership initiative.

This would be the first project with a single largest investment in AP, chief minister K Rosaiah said. Principal secretary (municipal administration) TS Appa Rao and L&T HMR managing director VB Gadgil signed the agreement.

L&T Limited chief financial officer YM Deosthalee said they would try to complete the project within the deadline. “The project is challenging. But we have taken challenges earlier and surpassed them. This is the largest BOT project for the company,”' he said.

The government has assured to provide the land required for the project in three months. He said the company expected an IRR of 14-17 per cent and expected the project to break even in about six to seven years after commissioning the project.