Center Sits on Hyderabad Metro Funds?

L&T, the concessionaire of Hyderabad Metro Rail is facing a financial problem after the project costs increased due to the delay in the project. To speed up the remaining work on the project is waiting for Viability Gap Fund (VGF) from the Center.

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Earlier, the Union Government had assured that it would provide 1458 crore as VGF up to July 2018. In the current financial year, the Centre released 1111.55 crores. L&T is trying to get the remaining funds to ensure that the work speeds up.

L&T has invested 13,310.39 crores so far in the Metro Rail project. The concessionaire is also claiming the cost escalation to the tune of 3000 Crore due to Telangana Government delaying the works and is also trying to get the same from the State Government.