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State Govt cancels agreement signed with Maytas for Hyderabad Metro Rail Project

Hyderabad|India|July'2009: The Chief Minister Dr Y S Rajasekhara Reddy has announced the decision of the State Government to cancel the agreement signed with Maytas Infra-led Consortum Limited for Hyderabad Metro Rail Project. It may be recalled here that the contract for the Hyderabad Metro Rail Project was awarded to Maytas Infra-led Consortium after due process of global tendering. Maytas Infra was bound to declare the financial closure and sumit the performance guarantee of Rs.240 crores by March 17 last.

However due to financial difficulties, the company could not do this. Due to the election code and the formation of Government, the administration could not take a decision. After the formation of the new government, the Chief Minister held a review meeting and gave Maytas Infra time up to 6th July to finally submit the performance security and achieve the financial closure. Though the government-appointed Chairman of Maytas Infra met the Chief Minister on 6th July, the company could not fulfill these commitments.

Hence the Chief Minister today decided to cancel the contract. He said the Hyderabad Metro Rail Project is very close to his heart and the government considers it as a vital project since it will solve the traffic problems in the city and provide travelling facility for 16 lakhs people per day.

The Chief Minister said priority of the State government is to see that the project is grounded at the earliest and completed with definite milestones. He asked the officials to prepare all alternate options now that the contract is canclled. He asked the officials to work out all options like Government and PPP models, but the ultimate aim should be to complete the project as early as possible as this project is quite essential to ease the traffic problems of Hyderabad and surrounding areas.

Minister for Municipal Administration, Anam Ram Narayan Reddy, Principal Secretary, MA&UD, C.V.S.K. Sharma, Principal Secretary, Finance, G Sudhir, MD, Hyderabad Metro Rail Project, N V S Reddy and other officials attended the meeting.

Reachout's News Bureau
 July' 2009

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