Special Correspondent

Deadline to achieve financial closure ended on Tuesday

State Government examining contents of letter from Maytas Infra

HYDERABAD: Maytas Infra Ltd has urged the State government to grant an extension of time for achieving financial closure for the Rs. 12,000-crore Hyderabad Metro Rail (HMR) project. In fact, the deadline to achieve financial closure ended on Tuesday.

The company, in a statement here on Tuesday, said that it explained the status of the project and sought additional time to achieve the milestones mentioned in the concession agreement.

The global recession and the consequent credit squeeze in national and international capital markets had created a “Force Majeure” situation. Besides, the ongoing PIL (public interest litigation) was having “an extremely deleterious effect on our ability to achieve the financial closure,” said the company. The company spokesperson said: “We are also affected by the global recession, and raising of debt, including external commercial borrowings, is proving to be a challenge in the market.”

The status report said that the HMR project had made good progress since the signing of the concession agreement. Topographic surveys, alignment designs, architectural layouts of stations and preliminary designs for civil works were completed. Designs for railway crossings had been submitted to the Railway authorities and inspection by them was also completed. World-class consultants had been appointed for engineering and project management, financial advisory, and debt syndication, tax planning and insurance. Traffic management consultant was being appointed and the tender document for rail systems was complete and ready to be issued. Tender document for civil works, power supply and depot would be finalised soon, the company said. Meanwhile, the State government is looking into the letter sent by Maytas Infra seeking extension of time for financial closure for Metro Rail. “We received a detailed letter on Monday evening seeking time to achieve the milestones in the Concession Agreement including achievement of financial closure and we are examining their request, “ said C.V.S.K.Sarma, Principal Secretary, Municipal Administration and Urban Development.