Hyderabad, Sep 4 (Calcutta Tube) The concession agreement for the Rs.12,132-crore Hyderabad Metro Rail (HMR) project was signed here Saturday.
The Andhra Pradesh government signed the pact with Larsen & Toubro Hyderabad Metro Rail Pvt. Ltd for development of Hyderabad Metro Rail project in public-private partnership (PPP) mode.
Leading construction group Larsen & Toubro, which bagged the project in July this year, has formed a special purpose vehicle for developing the project on design, build, finance, operate and transfer (DBFOT) basis.
As per the agreement, L&T has to submit bank guarantee for Rs.360 crore as performance security to government and achieve financial closure for the project within six months.
The concession period is for 35 years including five years for construction, with a provision of extension for another 25 years.
The concessionaire can undertake real estate development up to a maximum of 18.5 million square feet through utilisation of air space over the 269 acres of land earmarked for rail facilities.
The agreement was signed by Urban Development Principal Secretary T.S. Appa Rao and the newly-formed L&T Hyderabad Metro Rail Pvt. Ltd’s managing director V.B. Gadgil in the presence of Chief Minister K. Rosaiah.
Rosaiah said that with 71 km metro rail lane taken up in one go, it was one of the world’s largest metro rail projects and in fact the largest one in the PPP mode.
Out of the total project cost of Rs.12,132 crore, L&T sought a grant of Rs.1,458 crore and this will be borne by the central government.
The ground work on the project will begin in January next year. The project covers three high density traffic corridors – Miyapur-LB Nagar (28.87 km); JBS-Falaknuma (14.78 km) and Nagole-Shilparamam (27.51 km).
The estimated traffic demand is 15 lakh passengers per day in 2014 and 22 lakh passengers per day in 2024.
The fare structure consists of a minimum basic fare of Rs.8 and a maximum fare of Rs.19 in 2014.