Andhra Pradesh - Hyderabad   

No word from Maytas on financial closure

HYDERABAD: A final decision on the future of the agreement with the Maytas Infra - led consortium for implementing the Metro Rail project is likely to be taken by the State government in the next few days.

Till the end of office hours on Tuesday, the consortium did not communicate to the government about the progress it had made in achieving financial closure. Maytas Infra was scheduled to finalise its tie-ups for resources by March 17 but could not do so even after an extension for three months allowed by the government.

The Chief Minister indicated at a media conference in New Delhi on June 20 that the government would take a decision in 10 days about the future of the mega transportation project after awaiting a response from the consortium.

According to official sources, the government is now left with two options – allotting the projects to the next highest bidder or seek Centre’s support for making a joint venture between the Union and the State government.

Union Minister for Urban Development S. Jaipal Reddy expressed the Centre’s willingness to provide viability gap funding to the extent of 20 per cent in addition to 20 per cent grant.

The sources said Chief Minister Y. S. Rajasekhara Reddy was keen in obtaining maximum assistance from the Centre. He is likely to convene a meeting of the officials of the departments concerned later this week to discuss Maytas Infra’s response to the Rs. 12,000 crore project and the future course of action.

When asked whether Maytas Infra had informed the government about the financial closure, C. V. S. K. Sarma, Principal Secretary, MA&UD, said, “nothing has been communicated to me.” Maytas Infra had come out with a statement on June 18 that it was committed to completing the prestigious project and that it had initiated all steps for its financial closure.

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