Consultant appointed for valuation of Hyderabad Metro, raising loans for takeover

Hyderabad, June 23 (IANS) SBICAPS has been appointed as the consultant to conduct a comprehensive study on the valuation of Hyderabad Metro Rail Phase-I, the development of Phase-II, and other related matters. 

The consultant will study the valuation of Hyderabad Metro Phase-I, raise loans required for takeover, and select lending agencies. Further, a study will be taken up on Metro Rail expansion, construction cost, and financing for Metro Phase-II, it was decided at a meeting that Telangana Chief Minister A. Revanth Reddy had with Union Minister for Urban Development Manohar Lal Khattar in the presence of Union Minister for Coal and Mines G. Kishan Reddy in New Delhi on Tuesday.

The Chief Minister’s Office (CMO) described as ‘productive’ the discussions held between the Chief Minister and the Central ministers on the takeover of Metro Rail Phase-I and the proposed Metro Rail Phase-II.

The meeting was held a day after Revanth Reddy and Kishan Reddy met Railways Minister Ashwini Vaishnaw.

According to the CMO, the Chief Minister apprised the Union Ministers of the hurdles faced in the takeover of Metro Rail Phase-I and the launch of the second phase.

During the meeting on Tuesday, the CM and the Central ministers arrived at consensus and decided to appoint a consultant.

The state government and the Centre will decide the future course of action based on the report submitted by the consultant.

The CM and Union Ministers agreed to appoint a senior official from the Union government and the Special Chief Secretary of the State Municipal Administration and Urban Development (MA&UD) Department as representatives for coordination during the study by the consultant.

The two officials will work in coordination to facilitate the speedy completion of the study and official process.

On Monday, the Chief Minister, along with Kishan Reddy, met Railway Minister Vaishnaw and discussed the issue relating to the loan from Indian Railway Finance Corporation (IRFC) for Metro Rail Phase-I.

Revanth Reddy’s meeting with Vaishnaw in the presence of Kishan Reddy came a week after the Chief Minister demanded that the Centre release, without further delay, Rs 13,600 crore towards term loan refinancing for the Hyderabad Metro Rail Phase I, acquired by the state government from Larsen & Toubro Limited.

Revanth Reddy also demanded that the Centre clarify whether it will be part of Phase II of the Hyderabad Metro or not.

The Chief Minister had stated that a loan of Rs 13,600 crore was secured from a Japanese entity at an interest rate of 4 per cent. This loan needs to be transferred from the IRFC to the state government.

"We even submitted a letter securing the Reserve Bank's approval, yet the loan transfer was blocked," he said and blamed Kishan Reddy for stalling the release of funds.

Kishan Reddy accused Revanth Reddy of running false propaganda against him.

On May 25, the state government signed an agreement with the IRFC for a term loan refinancing facility.

The state government had, in April, formally acquired Hyderabad Metro Rail Phase I from Larsen & Toubro Limited for Rs 1,461 crore.

As per the agreement, the debt of LTMRHL, amounting to Rs 13,538.53 crore, as on April 30, which was guaranteed by L&T, has to be refinanced with a guarantee issued by the Telangana government.

The Chief Minister had claimed that the state government acquired the L&T Metro assets, valued at Rs 30,000 crore, for just Rs 15,000 crore.

--IANS

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