Failure to meet contractual obligations with L&T in the implementation of metro rail project

Citizens for a Better Public Transport in Hyderabad (CBPTH) on Friday alleged that the government has to pay a penalty of Rs.5.76 crore for failing to meet contractual obligations with L&T for the implementation of the project.

As per the concessionaire agreement, the government was to handover 269 acres of land, 10 properties of GHMC, widen the road at several stretches, obtain permission from the Railways. “If the government fails to handover the properties within 60 days of payment of Rs.360 crore as Performance Security (PS) by L&T, a penalty of Rs.36 lakh per day has to be paid,” CBPTH convenor C. Ramachandraiah told reporters here.

“The government has accumulated a penalty of Rs 5.76 crore for the last 16 days and once it crosses 90 days, it will have to pay Rs 1,000 per day for every 500 square metre,'' he said.

He asked the HMR officials make public the exact locations, designs of stations, including intersection points and extent area required along with properties to be acquired.

He also asked authorities come clean regarding the status of lands to be handed over to L&T which is executing the project.

Mr. Ramachandraiah questioned the rationale behind the HMR officials in starting metro works from Nagole and Miyapur. “Why only from Nagole and Miyapur? We suspect it is because 100 acres of land has been allocated in these two places for real-estate purposes,” he said.


  • Rationale behind HMR officials starting Metro works from Nagole and Miyapur questioned

  • 100 acres allocated at these two places for real estate purposes, suspects CBPTH