The Andhra Pradesh cabinet on Saturday cleared the Rs 8,760-crore Hyderabad Metro Rail Project and approved the formation of a special purpose vehicle (SPV) to coordinate and monitor fast-track implementation of the project.
The five consortia which have prequalified for the project are Essar Constructions Limited (SREI Kolkata, Singapore MRT, SEC and STE of Singapore), Magna Allmore (Siemens, Dubai-based Emirates Trading Agency, and Nagarjuna Constructions Company), Reliance Energy (Bombardier, Canada); GVK (Gammon, France-based Alstom and IDFC), and Navabharat (Maytas, Thailand-based ItalThai and IL&FS).
The public-private partnership project will be implemented on a build-operate-transfer (BOT) basis.
The concession period is for 35 years (including five years for construction) and this mass rapid transit system (MRTS) with all its assets will be transferred to the Andhra Pradesh government after the expiry of the concession period.
According to state Minister for Information and Public Relations Mohammed Ali Shabbir, "The three most congested routes of Hyderabad (66.39 km) will be covered in the first phase, which will be completed in four years."
All the stations will be connected with feeder bus services. The terminals and junction stations will be specially connected with BRTS (Bus rapid transit system) routes being developed under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
All the three lines will have elevated up and down rail tracks, generally in the central road median without obstructing the road traffic. With an average cost of Rs 132 crore per km, it will have 63 stations, at an average interval of 1 km each.
The project will be implemented under the viability gap funding scheme, in which the Centre and the state government each will fund 20 per cent of the project cost. The state government will take 11 per cent share in the equity capital of the project. The remaining cost will be borne by the selected BOT developer.
"Since MRTS projects are generally not financially viable, development of real estate will be allowed over the depots and the stations, on the lines of Singapore, Hong Kong and Tokyo.
The property will have to be developed by the successful bidder with his own funds, which will be outside the project cost.
The developed property can only be rented out during the concession period and cannot be sold.
It will revert to the government after the concession period," the minister added.
In a related development, the cabinet also cleared the Rs 1,731-crore Phase II A of the Outer Ring Road project for Hyderabad to give better connectivity to upcoming International Airport at Shamshabad, the Fab City near Thukkuguda and the Hardware Park. The project will be taken up on public-private partnership based on BOT (annuity) model. The total concession period will be 15 years.