L&T threatens to pull out of Hyderabad Metro rail project

By Viswanath Pilla  www.livemint.com

Hyderabad: Larsen and Toubro Ltd (L&T), the company building the Rs.16,375 crore Hyderabad Metro rail project, has threatened to pull out because of issues relating to project viability and non-availability of right of way.

L&T proposed that the government of Telangana (GoT) “take over the project and the underlying contract from the concessionaire” in a 10 September letter to N.V.S. Reddy, managing director of Hyderabad Metro Rail Ltd—the agency that monitors the project on behalf of the state government.

“GoT should do so by restituting the concessionaire in a manner whereby the concessionaire’s property and entitlements are returned to it,” V.B. Gadgil, chief executive and managing director of L&T Hyderabad Metro Rail Pvt. Ltd, the unit that’s executing the project, wrote in the letter.

Mint has reviewed a copy of the letter. L&T also expressed concerns over the economic viability of the project, which was conceived in undivided Andhra Pradesh. More info

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