Hyd metro rail project on track

The last hurdle to the proposed Hyderabad metro rail project was removed yesterday with Union finance minister P Chidambaram announcing the Centre's viability gap assistance to the project.

The Andhra Pradesh government had last year invited global tenders to execute the metro rail project on three busy routes in Hyderabad, covering a distance of about 60 km under build own and operate (BOT) basis. The project is estimated to cost Rs 6,500 crore. The state government had approached the Centre to provide a viability gap fund to go ahead with the implementation.

As per the norms and the actual gap in achieving the viability threshold for the project, the state government is hopeful of receiving an assistance of Rs 1,500 crore for the project. Six of the seven international consortia have been shortlisted by the project authorities and they are in the process of appointing a consultancy firm to evaluate both technical and financial bids to be submitted by these companies.

According to N V S Reddy, director of the Hyderabad Metro Rail Project, the government intends to start the execution of the project during the current financial year itself though the process of selection of bids usually require more time.

"All this process is expected to be completed in another 3-4 months period," he told Business Standard. The developer has to complete the project in a four-year period.

Several alternative technologies, including mono-rail, have been suggested for the proposed project. Government took a technology neutral approach for the present.