Infrastructure major L&T, which is in the process of achieving financial closure for its recently-bagged Hyderabad Metrorail project, will raise Rs 11,400 core debt from a consortium of 10 banks led by State Bank of India, sources close to the development said.
The cost of the project that was originally estimated at around Rs 12,132 crore has gone to up to Rs 14,800 crore as the length of the route is expected to be increased.
A senior government official who has confirmed having received financial closure from L&T said they could not make it public until March 15 as the election code of conduct is in place in the state.
"Total debt component is Rs 11,400 crore. L&T equity is Rs 3,400 crore. SBI is the lead banker with Rs 2,100 crore. Total 10 banks are participating in the project," sources said.
L&T signed the concession agreement last September. It has initiated soil testing and topographical survey along the 71-km route of the metro rail.
"Actual project work will start within three months. Once we start we do not want to stop the work," a senior official of L&T said on condition of anonymity.