Hyderabad:The initial delay in the appointed date, inflation and high interest rate escalates the cost of the L & T Hyderabad Metro
L&T (Larsen and Toubro) Hyderabad Metro Rail Limited today hinted at the possibility of cost escalation of the elevated metro rail project by about Rs 2,500 crore to Rs 3,000 crore.The Rs 12,132-crore-project may need such additional funding for some of the unavoidable circumstances. These include the initial delay in the appointed date, inflation and high interest rate regime ruling for too long.
VB Gadgil the chief executive and Managing Director of the L&T Hyderabad Metro Rail stated that they are also in the process of concluding a loan swap deal of about Rs 1,000 crore shortly. He mentioned that the talks with the lenders were at an advanced stage. Gadgil also mentioned that the project presently is in a very critical mode. Due to the delay in initial date and high interest rate, there might be a 2,500 crore to Rs 3,000 crore escalation.
The overall cost of the project currently is about Rs 14,132 crore. This includes the Rs 2,000 crore which the State Government is investing for the facilitation of the land and other infrastructure. The 72-km elevated metro project in Hyderabad is expected to be ready by 2016-17. The good news is that the 8-km phase one is expected to be commissioned by March 2015.
It also said that it was yet to get any communication from the Telangana government on changing the alignment of tracks to avoid Legislative Assembly building and Sultan Bazar.
Source- The Hindu Business Line
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