Gajji_maraja Posted November 4, 2014 Report Posted November 4, 2014 HYDERABAD: Who will blink first? That describes the current standoff between the government of Telangana and Larsen & Toubro (L&T), the concessionaire for the Hyderabad Metro Rail project whose continuance is now in doubt. Though L&T is going ahead with the metro rail construction (except for corridor 2 which runs through the Old City and near the assembly), the project also entails commercial real estate development. This is to make the highly capital intensive project viable. But due to the bifurcation of the state, realty prices have hit rock bottom. At the present level of real estate prices, L&T cannot expect to break even on the project. For this, as per internal estimates the company will require sops. More real estate could be made over to L&T for commercial exploitation as a sop. As per the contract agreement, the company has already been handed over 259 acres of land across the city for commercial exploitation. With a higher quantum of land even at lower prices, the company can make enough money for the project to become viable. The other way is to grant the project a higher quantum of 'viability gap funding' (VGF). All highly capital intensive projects with long gestation are granted VGF by the Union government. The Hyderabad Metro Rail project has been granted a VGF of Rs 1,458 crore by GOI. But now the internal calculations of the company apparently show that an additional VGF of the same amount (to take the total VGF to Rs 3,000 crore) might be required to make the project viable. L&T's high profile chairman A M Naik has sought an appointment with Telangana chief minister K Chandrasekhar Rao to explain the ground situation and seek his help presumably to secure a higher VGF from GOI. Other small concessions from the government might also be sought. L&T's case can become strong, if the state government agrees to play ball and take up its demands with the Centre.Of course, there is no guarantee that the Union government will be in a hurry to grant a higher VGF but at least the ball could be set rolling if the state government also pitches in. The government of Telangana, however, perceives that this could be a pressure tactic by L&T to actually get more land from the state government in Hyderabad. Analysts, however, aver that the meeting between Naik and KCR- both seen as strong leaders with a tendency to keep all powers with themselves - will determine the course of the project. The first appointment between the two shortly after the new government came to power in June turned out to be a no-show. At the appointed time, KCR was not present. Although he sent word that he was in the assembly and asked Naik to wait, the latter stomped out. Now with things not looking rosy for L&T, the company has sought an appointment with KCR again. After sitting on the request, the CM has now signaled that he will meet Naik. KCR has many concerns about the project and had sought a change in alignment near the assembly and in Sultan Bazar. It is expected that he may agree to L&T's demand only if the latter also agrees to meet some of his demands.
Gajji_maraja Posted November 4, 2014 Author Report Posted November 4, 2014 Now, the TS government gets another big shock from the Hyderabad L&T Metro Rail. It seems that L&T is expecting the Telangana Govt to pay some sort of compensation for the delay of the project in Hyderabad. The concessionaire letter was suddenly leaked to media. The company feels that after the state bifurcation the rate has fallen down and feels that Metro Rail project cannot fetch them anything more. However, these issues were settled down calmly and got the works being done. The company is still not satisfied and now demands more. Shockingly, L&T has all set to demand 1500 Crore as a damage compensation package from the state government. This is because the project is under PPP model which has the capacity to become in-viable for them. L&T gave suggestion to state govt. that if it cant afford then ask the Central Govt. to grant funds. While, L&T has been granted 259 acres of land as a concessionaire to build commercial buildings around the Metro Project. However, the rates have declined and keeps the TS Govt. in depression. So what do you think? Is L&T reasonable in demanding?
Gajji_maraja Posted November 4, 2014 Author Report Posted November 4, 2014 yellow media English media news adhi :(
bokadia Posted November 4, 2014 Report Posted November 4, 2014 English media news adhi :( ayitey ban english media and also L&T for black mailing govt :(
Gajji_maraja Posted November 4, 2014 Author Report Posted November 4, 2014 ayitey ban english media and also L&T for black mailing govt :( :( dora ki chukalu chupistunaru L&T vallu
bokadia Posted November 4, 2014 Report Posted November 4, 2014 :( dora ki chukalu chupistunaru L&T vallu ippudoka TG minister vachi idi AP valla kutra antadu..
Gajji_maraja Posted November 4, 2014 Author Report Posted November 4, 2014 L&T manger sannasi CITI_c$y CITI_c$y CITI_c$y
Hyderabad_Nawab Posted November 5, 2014 Report Posted November 5, 2014 LTT for Pink Panthers & Yellow Cheddis...
Gajji_maraja Posted November 5, 2014 Author Report Posted November 5, 2014 LTT for Pink Panthers & Yellow Cheddis... ltt
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