Hyderabad : The Concession Agreement for the Rs 12,132 crore Public-Private Partnership Hyderabad Metro Rail project was signed on Saturday between the Andhra Pradesh government and L&T Hyderabad Metro Rail Private Limited.
For the project, expected to complete within 2015 on a design, build, finance, operate and transfer basis, the special purpose vehicle was formed by conglomerate Lasen & Toubro Limited.
The contract was awarded to L&T after the firm quoted the lowest Viability Gap Funding and sought only Rs 1,458 crore (12 per cent), which will be borne by the central government, out of the entire Rs 12,132 crore project, making it the the single largest investment in the state.
The mammoth project is expected to generate employment for about 5000 engineers and about 45000 skilled and unskilled workers besides involving consumption of 26 lakh tons of cement, 2 lakh tons of steel; and 58 lakh cubic meters of concrete.
The huge material need will result in establishment of many ancillary industries around Hyderabad and will give a big shot in the arm to developmental activities in various parts of Telangana region government officials said.
The project covers 3 high density traffic corridors of Hyderabad and the Concession Period has been set for 35 years (5 years construction period and 30 years of operations period), with a provision of extension for another 25 years.
The system, which is estimated to see a traffic demand of 15 lakh passengers per day in 2014 and 22 lakh passengers per day in 2024, will be designed for two minutes frequency trains but trains can initially be run with three to five minutes frequency.
The Agreement on Saturday was signed by Urban Development Principal Secretary T S Appa Rao and the Managing Director of the newly formed L&T Hyderabad Metro Rail Pvt. Ltd.V B Gadgil in the presence of Chief Minister K Rosaiah.