Hyderabad, Feb 24 (UNI): In a significant move, Telangana Cabinet led by Chief Minister A Revanth Reddy on Monday night approved the takeover of the 69-km Hyderabad Metro Rail Phase-I network from Larsen & Toubro (L&T) by paying about Rs15,000 crore, including liabilities and decided to immediately initiate necessary steps in this regard.
A Cabinet Sub-Committee constituted to examine the acquisition and feasibility of the Metro submitted its report, which was discussed in detail.
The government also decided to deliberate further on the issue during the upcoming Assembly sessions, if required.
According to the Sub-Committee’s report, the State government will have to pay approximately Rs15,000 crore, including debt, to acquire the Phase-I project from L&T.
The present value of Metro assets is estimated between Rs19,000 crore and Rs22,000 crore. The acquisition is expected to be completed at an estimated discount of about 22 percent.
The Cabinet resolved to fast-track Metro Phase-II expansion works.
The union government has clarified that the entire Metro network must operate under a single entity for Phase-II expansion to be executed as a joint venture between the Centre and the State.
Since L&T, which operated Phase-I, was reportedly not keen on undertaking Phase-II expansion, and given the growing traffic congestion in the city, the government deemed the takeover necessary to ensure seamless expansion.
The State government has already submitted proposals to the Centre for 76.4 km expansion in five new corridors under Phase-II A and 86.1 km expansion in three corridors under Phase-II B
With the takeover decision, officials indicated that the Metro expansion process is expected to gain momentum.
Telangana Cabinet approves Metro takeover from L & T; clears phase-II push
