Concession pact signed for metro rail project

Hyderabad: Maytas Metro (MML), the company formed to build, operate and transfer the Rs 12,132-crore metro rail project, has signed the formal concession agreement with the Andhra Pradesh Government.

Mr B. Teja Raju, Vice-Chairman of Maytas Infra, said the company would have 26 per cent in MML, while Nava Bharat would hold 16 per cent and IL&FS and Ital Thai will hold five per cent each. The State Government would hold 11 per cent.

The shareholding pattern, however, could change considering the fact that the consortium owns the remaining 37 per cent. It is learnt that the consortium could sell part or full of the 37 per cent at a premium by roping in more partners.

“We will complete the process before completing the financial closure,” said Mr Teja Raju, Managing Director of MML and son of Mr B. Ramalinga Raju, Chairman of Satyam Computer.

The financial closure is supposed to be completed within six months of signing the concession agreement.

Addressing a press conference after the signing in the presence of Dr Y.S. Rajasekhara Reddy, the Chief Minister, Mr Teja Raju said work would commence after six months.

The 71-km metro rail project, envisaged to ease the traffic congestion along the busy roads of the State capital, would be operational by September 2012.

Replying to a question on the concern that the project might create endless traffic problems during construction, Mr N.V.S. Reddy, Managing Director of Hyderabad Metro Ltd (the arm floated by the State Government to supervise the project), said the company had roped in Engineering Staff College of India to advise it on bottlenecks and also the unutilised parts of the roads.

Also, the company would soon call for global tenders to select a competent player to ensure scientific management of traffic, minimising the inconvenience during construction.

The Chief Minister said the public-private project would result in an income of Rs 30,311 crore during the concession period.

According to the agreement, Mr Teja Raju gave a cheque of Rs 11 crore to the Chief Minister.

The company would give Rs 50 crore on achieving financial closure, Rs 200 crore in the fourth year, Rs 100 crore a year from the seventh to ninth years and Rs 1,750 crore a year from the 18th year to 34th year.

Though the Maytas-led consortium had declined to take Central grant for the project one of the factors that helped the consortium clinch the project the State Government was pursuing the Centre to release Rs 2,300 crore. The Chief Minister had decided to take up with the Centre the release of the grant.