Business IdeasHyderabad Metro Project: Govt to invite for bids on July 16
The Andhra Pradesh government has decided to invite fresh global bids for the Rs 12,200 crore Hyderabad Metro Rail Project that was taken away from Maytas Infra after funding related problems.
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The process will be initiated on July 16 and completed by November 15, according to state Municipal Administration Minister Aanam Ramanarayana Reddy.
"We want to put the Metro on tracks within the next three to four years," the Minister told reporters soon after a high-level review meeting on the HMR Project, chaired by Chief Minister Y S Rajasekhara Reddy here today.
Last week, the state government cancelled the contract awarded to Maytas Infra-led consortium after it failed to tie up funds despite a three-month extension. Maytas Infra is promoted by kin of disgraced Satyam founder B Ramalinga Raju.
Failure to mobilise funds forced the government to take stock of the project and firm up a decision on cancelling the award.
Accordingly, the Chief Minister discussed the project with the Municipal Administration Minister and top officials here today.
"Everything else about the project, including the cost, will remain the same. If necessary we will utilise the viability gap fund offered by the Government of India," Ramanarayana Reddy said.
In view of the past experience, the bid security for the project was enhanced from 0.5 to one per cent, implying that the successful bidder would have to pay Rs 120 crore to the state government.