L&T bags Hyderabad metro rail project rail project

HYDERABAD: Engineering and construction major, Larsen Toubro (L T), has emerged as the lowest bidder for the Rs 12,312crore Hyderabad Metro Rail project. An official announcement in this regard is expected in a day or two.

Sources indicated that L T was selected on the basis of the lowest grant it had sought from the government including Rs 1,458 crore Viability Gap Funding (VGF). The bidders had the option of seeking 40 per cent of the total project cost i.e., Rs 4,853 crore as VGF from the central and state governments. The other two lowest bidders namely TransstroyOJSC (Russia) consortium and Reliance sought VGF of Rs 2,200 crore and Rs 2,991 crore respectively.

“We secured the metro rail project, but we are yet to receive the Letter of Intent from the Government of Andhra Pradesh. We hope to achieve financial closure over the next six months. It will take four years or so after financial closure to complete the project,” said an L T official.

The proposed project will be taken up on design, build, finance, operate and transfer (DBFOT) basis in publicprivate partnership (PPP) mode.

Though HMRL had shortlisted eight bidders, sources said, only three including L T had actually submitted financial bids. As per norms, bidders should have a net worth of Rs 3,000 crore and should have executed projects worth Rs 18,000 crore in the last 10 years.

The state government had, in July, 2009, scrapped the contract, first awarded to a consortium led by Maytas Infra Ltd. Following the SatyamMaytas fiasco in 2008, operations of Maytas Infra were badly hit and partners of the consortium deserted the sinking ship. Subsequently, Maytas failed to achieve financial closure on time.

Published in: on July 17, 2010 at 1:17 pm  Leave a Comment  

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