Hyderabad Metro | Hyderabad Metro Rail is facing new problems every day. While the acquisition process has been marred by hiccups for years, the day-to-day management is now in dire straits.
Hyderabad Metro | Hyderabad City Bureau, June 25 (Namaste Telangana): Hyderabad Metro Rail is facing new problems every day. While the acquisition process has been marred by hiccups for years, the day-to-day management is now in dire straits. As the takeover process from L&T stopped in the middle, the argument about who should bear the burden of management started. Although informal discussions have been going on between the L&T company and the state government for a few days, the result is not clear. Authorities say it will take at least five months for SBI Caps to complete the valuation of Metrorail’s assets and complete the debt consolidation process. Until then, there was great uncertainty as to who would take over the management responsibilities.
We have given it to the government.. it has not been completed
It is known that the Revanth Reddy government bought the first phase of the 69 km metro line from L&T. While there is a daily loss of Rs 2.5 crore in the running of the metro, L&T has shouldered this burden since the acquisition process started. However, it is known that the refinancing process has come to a standstill due to the dispute between the central and state governments over the loan sanction. With this, the question of who will manage the metro has started. L&T claims that the equity share has already been fully transferred in the name of the government, so they can no longer bear the burden of running the metro. According to the agreement, June 30 is the cut-off date. On the other hand, since the acquisition process is not completed, the government is not ready to shoulder the burden of not getting full ownership rights, sources said.
Up to five months?
What is the actual value of the metro project? How much funding is required for Phase-1 transfer and Phase-2 expansion? It is known that the central government has appointed SBI CAPS as a consultant to study such issues. The committee is likely to take at least five months to complete its study and report, official sources said. It has been revealed that until then the loan granting and transfer process will stop. So who will run the metro for these five months? Who bears the daily losses? The discussion is going on.
Informal meetings
With the Delhi-centred developments on the metro rail, key developments have taken place between L&T and the state government. It is learned that the top officials of L&T are having a meeting with the Chief Secretary of the State Government, K Ramakrishna Rao. These informal meetings have now become a topic of discussion. According to reliable sources, pending financial transactions, management and funding were discussed at the time of Metro transfer. Who should bear the burden of accrued interest as the transfer is delayed? Who should pay Rs. 2.5 crores coming daily? It is known that there was a serious discussion on such topics. However, the information is not yet clear.
