Andhra govt plans fresh bids for Metro project

Andhra govt plans fresh bids for Metro project
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First Published: Thu, Jun 18 2009. 10 45 PM IST
Updated: Thu, Jun 18 2009. 10 45 PM IST
New Delhi: The Andhra Pradesh government has decided to call for fresh bids for the Rs12,000 crore Hyderabad metro project after a committee appointed to check if Maytas Infrastructures Ltd would be able to execute the project, found that the company might be unable to do so.
The company, however, said no decision had been taken by the government. “In view of certain reports in the media on Hyderabad Metro Rail Project today, Maytas Infra would like to state that it has requested the AP state government for extension of time. The state government has not taken a decision yet on this matter,” a company official said.
A Congress official said the decision was taken after the committee found that Maytas might be unable to raise funds for the project, under which the company has to finance and construct the metro, in exchange for the right to develop some land.
Maytas is the lead member of the consortium that won the project. Other partners include infrastructure financier Infrastructure Leasing and Financial Services Ltd and civil infrastructure firm Italian Thai Development Public Co. Ltd. The company has already missed a March deadline for tying up funds for the project and has requested an extension from the state government.
Company officials are scheduled to meet its lead lenders with details of a corporate debt-restructuring package on Friday, which a senior Maytas official also described as a “relationship meeting.”
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First Published: Thu, Jun 18 2009. 10 45 PM IST