L&T Hyderabad Metro Rail project pact signed with Andhra

The first project with a single largest investment in Andhra Pradesh (AP)—the US$ 2.60 billion Hyderabad Metro Rail (L&T HMR) project—was signed off by the Andhra Pradesh government on September 4, 2010, as a concession agreement with L&T Hyderabad Metro Rail Private Limited , the special purpose vehicle for its development. Principal secretary (municipal administration) TS Appa Rao and L&T HMR managing director VB Gadgil signed the agreement.

A public-private initiative, the project is imposing and L&T Limited chief financial officer YM Deosthalee stands committed to try to complete the project within the deadline. "The project is challenging. But we have taken challenges earlier and surpassed them. This is the largest built, operate and transfer (BOT) project for the company,”" he said.

The Andhra government has assured that land required for the project will be arranged in three months. Deosthalee is optimistic that break even for the project will happen between six to seven years after commissioning the project and that the company is expecting an IRR of 14-17 per cent.