Hyderabad: The Andhra Pradesh government today decided to award the Rs12,132 crore Hyderabad Metro Rail Project to Larsen and Toubro Limited (L&T).
The state Cabinet, which met here today under the chairmanship of chief minister K Rosaiah, approved the recommendations of a three-member committee to award the project to L&T that has emerged as the lowest bidder.
L&T has sought Rs1,458 crore as Viability Gap Funding (VGF)-a one-time grant from the government to infrastructure projects undertaken through public private partnerships (PPPs). The VGF amount would be released by the Government of India while the AP government would spend Rs1,980 crore towards acquisition of 204 acres of land at two places in Hyderabad as well as relief and rehabilitation of the affected people.
The state government would release Rs500 crore as the first instalment in the current financial year, according to minister for information J Geeta Reddy.
L&T would form a special purpose vehicle (SPV) and enter into a concession agreement with the state government within a month of the Letter of Award (LoA). It would have to provide a bank guarantee of Rs360 crore as performance security and achieve financial closure in six months, the minister said.
Ground work for the project was scheduled to commence in January 2011, she added.
The project would be completed in five years, covering three high-density traffic corridors over a 70 km route.
The traffic demand per day is estimated to be 15 lakh passengers in 2014, which will go up to 22 lakh in 2024.
Telecom operator Reliance Communications Ltd (RCom) said it partnered with Universal Music to offer music-related services and content across its GSM, CDMA, 3G Mobile and Wireless Broadband platforms including Voice, WAP, Web, IVR, blog and through on-ground events.
RCOM has got the license to offer 3G services in 13 key circles including Mumbai, Delhi and Kolkata, it said in a release.
On Wednesday, RCom shares ended 1.3% higher to Rs176 on the Bombay Stock Exchange, while the Sensex closed 0.6% up at 18,217 points.
Fully drawn yarn manufacturer Nakoda Ltd said its second quarter net profit increased 39% to Rs7.8 crore as against Rs5.6 crore in the corresponding period last fiscal. During the June 2010 quarter, the company's total revenues rose 23% to Rs309 crore, from Rs251 crore, same period last year.
On Wednesday, Nakoda shares declined 0.2% to Rs14 on the Bombay Stock Exchange, while the Sensex closed 0.6% higher at 18,217 points.