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Maytas consortium wins Hyderabad metro rail bid

Maytas consortium wins Hyderabad metro rail bid
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First Published: Wed, Jul 23 2008. 11 36 PM IST
Updated: Wed, Jul 23 2008. 11 36 PM IST
Hyderabad: A consortium of Maytas Infra Ltd, Navabharat Ventures Ltd, Ital Thai of Thailand and IL&FS Ltd has won the Rs12,200 crore or $2.87 billion Hyderabad Metro Rail project and will develop the 71km metro network on a build, operate and transfer (BOT) basis with a concession period of 30 years. The financial bids were opened here on Wednesday.
The other consortia that were shortlisted included one of Essar Constructions (India) Ltd, SREI, Singapore MRT, SEC and STE, another of Nagarjuna Construction Co. Ltd, Magna Allmore of Malyasia, Siemens AG of Germany and Emirates Trading Agency of Dubai, a third of Reliance Energy Ltd and Bombardier Transportation GmbH of Canada, and a fourth of the GVK group, Gammon, Alstom Corp. of France and IDFC Ltd.
“We have won the bid,” confirmed P.K. Madhav, chief executive officer of Maytas Infra.
Interestingly, the GVK consortium did not put in a financial bid—the second stage of the selection process. “The consortium partners felt that the project is not viable and decided to pull out,” said GVK group’s chief financial officer Issac A. George.
The elevated metro rail project will have three routes—Miyapur to LB Nagar, Jubilee Bus Station to Falknuma and Osmania University to Shilparamam in the city. On completion, the project is expected to ferry around 1.7 million passengers every day.
The Union government agreed earlier this year to offer a grant of 30% of the project cost. A key criteria for evaluation of the financial bids was the funding assistance sought by the bidder from the government.
“We did not seek any funding from the government for the project in our financial bid,” said Mohan Gurunath, head of BOT projects in Maytas Infra.
The project will have an equity component of 30% and debt component of 70% and the financial closure will be achieved in the next six to seven months. It will be completed within five years of the financial closure, Gurunath added. The state government has already earmarked 269 acres of land for the project.
Shares of Maytas Infra gained 19.80% to close at Rs494.25 each on Wednesday on the Bombay Stock Exchange, while shares of Navabharat Ventures rose 5.94% to Rs276.25 each. The exchange’s benchmark Sensex index gained 838.08 points or 5.94% to close at 14,942.28 points.
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First Published: Wed, Jul 23 2008. 11 36 PM IST