On 21 January 2007, the Andhra Pradesh Cabinet gave approval for 'Hyderabad Metro Rail Ltd' - a special purpose vehicle (SPV) to implement the Rs.8,760 crore elevated Hyderabad Metro Rail Project.

Five leading consortia have been pre-qualified for the largest public-private partnership (PPP) project which include:

• Essar Constructions, SREI, Singapore MRT
• Magna Allmore, Siemens, Emirates Trading Agency, Nagarjuna Constructions
• Reliance Bombardier
• GVK, Gammon, Alsthom, IDFC
• Navbharat, Maytas, Italthai and IL&FS

The authorised capital of the SPV will be Rs.1,000 crore with paid-up capital of Rs.100 crore. The project will get a concession period of 35 years, including five years during construction and later all the assets of the mass transit system will be transferred to the state government.

The project seeks to decongest three dense corridors through a stretch of 66.39 km metro rail line to be developed with an outlay of Rs.132 crore investment for a kilometre length. The the technical and financial bids is expected to get approvals from the Centre by February 2007, followed by pre-bid conference and selection of the developer. Work on the project is set to begin by June 2007.

Hyderabad MRP will be implemented under the Central government's viability gap funding scheme wherein 20 per cent of the project cost will come from the Centre and up to 20 per cent from the state government. In addition, the state government will pick up 11 per cent stake in the equity capital of the SPV. The remaining project cost will be borne by the selected developer.

Also See:

Six in race for Hyderabad metro rai project (05-Sep-06)