The state Cabinet has approved the selection of the Nava Bharat-Maytas consortium as the developer for the Hyderabad Metro Rail project, which quoted the lowest bid for the project.
The project will be awarded to the consortium shortly and the financial closure for the project will be achieved within six months of signing the agreement, according to information and public relations minister Anam Ramnarayana Reddy.
Briefing the media after the Cabinet meeting here on Monday, he said the developer should provide a bank guarantee for Rs 240 crore as performance guarantee within six months of signing the agreement. It should build the Metro Rail system to handle 110 per cent of the peak hour traffic.
The project will be built under the ‘Andhra Pradesh Municipal Tramwasys (Construction, Operation and Maintenance) Ordinance 2008’, the minister said.
Though five bidders were pre-qualified, only four of them participated in the bidding. Nava Bharat consortium did not seek any grant from the government and proposed to pay Rs 30,311 crore to the government during the concession period, he said.