The Hindu : Andhra Pradesh News : Maytas bags rail project

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Friday, Sep 19, 2008
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Andhra Pradesh

Andhra Pradesh

Maytas bags rail project

Special Correspondent

To build and run metro across 71.16 km

MML to sign agreement on Friday
Government will invest Rs. 250 crore in cash

HYDERABAD: ‘Maytas Metro Limited’, will be the new special project vehicle of Maytas-led consortium to construct and run the elevated metro rail to be built across 71.16 km across three dense traffic corridors of the twin cities.

The new firm whose name was registered with the Registrar of Companies could be having up to five directors with two from the Hyderabad Metro Rail which will act as a mentor monitoring the functioning.

MML will be signing the Concessionaire Agreement including the Manual of Specifications and Standards with the Government on Friday.

Agreement

A shareholding agreement too will be signed with the Government to be represented by HMR Chairman and Principal Secretary, Municipal Administration and Urban Development Department, C.V.S.K. Sarma. Government will invest Rs. 250 crore in cash towards equity participation of 11 per cent in MML, also called as ‘Golden Share’ equal to 26 per cent holding, giving veto powers on key issues.

Right to lease

MML will have the right to lease land or develop properties over three depots of Miyapur, Falaknuma and Nagole and over parking/circulation areas of about 33 of the 66 stations for the concession period of 35 years.

However, it cannot sell any land with ownership rights remaining with the Government and developed properties are to revert to the latter after expiry of the concession period.

Consortium of Maytas, Maytas Infra, Navabharat Ventures (two city-based firms) with Ital Thai and IL&FS had earlier bagged the Design, Build, Finance, Operate and Transfer the Rs.12,000 crore project by proposing to make payment upto Rs. 30,311 crore while not seeking any Government grant that was on offer. For now, MML will chip in with Rs. 11 crore and within 180 days it will have to provide a bank guarantee of Rs. 240 crore as ‘performance guarantee’ once the agreement is signed. Metro rail’s first phase routes are - Line one: Miyapur to L.B. Nagar, Line two: Jubilee Bus Station to Falaknuma and Line three: Nagole to Shilparamam.

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