Modify the prevailing ‘concession agreement’ to offer better terms
Modify the prevailing ‘concession agreement’ to offer better terms
The Telangana State Government has anticipated a proposed ‘Airport Metro’ for Hyderabad International Airport at Shamshabad, about 30.7 km from Gachibowli, to attract private infrastructure firms for construction of the project under Public-Private Partnership (PPP) mode. Reworked the financial model for Approx ₹5,500 crore cost.
Hyderabad Metro Rail (HMR) managing director NVS Reddy, also in-charge of Hyderabad Airport Metro Limited, the special purpose vehicle set up to take up the project, said the decision to ‘change’ in the light of the “changed economic scenario”. was taken. Concessional contracts are in vogue to provide more “better terms” to anyone who comes forward to invest in the project and build.
“This is an open offer from the government to any private entity willing to invest for the airport in the next phase of the metro rail project. The government is ready to give more concessions to L&T Metro Rail Hyderabad (L&TMRH) than what it got in the construction and operation of the first phase of the 69-km project through the three major traffic corridors of the twin cities,” he said on Thursday. Said to
A ‘hybrid annuity model’ is being planned for the Airport Metro, which is to be further eased with the government offering to provide financial assistance not only during the construction of the project but also in the first 5-10 years of operation. “From the experience of Phase I of Metro, it has been observed that the concessionaires face tremendous financial pressure during this period as these are huge capital expenditure projects with long term returns. Also, we don’t want to completely eliminate the ‘risk’ element for the private sector.”
If the average cost of steel, cement and other construction materials are taken into account (not the current super high rates), it is estimated that the second phase of the Metro could be constructed at around ₹165 crore per kilometer from the usual ₹300 crore. Is. The work done in the first phase of the metro is likely to cost one kilometer, Mr Reddy said.
This is possible by reducing the height of the elevated structures and will not require more land acquisition as the line will pass along the Outer Ring Road (ORR) in the middle of the road and later. “The exact details of early financing, annuity payments and others will be worked out at the bidding stage. It is a real challenge to build large infrastructure projects in the present scenario,” said the MD.