Centre to bear 20% cost of metro rail project

The Centre has agreed to bear 20 per cent cost of the Rs 6,300-crore metro rail project proposed for Hyderabad city, chief minister Y S Rajasekhara Reddy announced here today. The Government of India will give this money to bridge the viability gap of the project.

The Centre agreed to the state government's proposal to this effect on July 27, Reddy said. With the Centre coming forward to bridge the viability gap, the state government will now go ahead with regard to the implementation of the project.

According to officials, the state government will soon invite global expressions of interest from bidders who are willing to execute the project under BOT basis. The proposed MRTS (mass rapid transit system) project comprises three routes "� Miyapur-Charminar, Secunderabad-Falaknuma and Tarnaka-Punjagutta-Hitech City "� with a total length of 59 kilometres.

A couple of foreign companies had approached the state government with their proposals to implement various modes of MRTS including mono rail system.

"The government is technology-neutral as far as the selection of a particular system for the implementation of MRTS project is concerned. It will be decided only on the merits and cost effectiveness offered by various options at a later date and only after the pre-qualification of the bidders is done," a senior government official told Business Standard.