Hyderabad Metro Rail Project which started with an estimation of 14132 Crore has now scaled up to 19000 Crore. The project which should be complete by now has about 25-30% of work pending. L&T, the concessionaire of the project blames Telangana government for this cost escalation.
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L&T alleges that the project was delayed mainly due to Telangana government dillydallying over the change in the alignment of the project and failing to provide the right of way at various stretches which delayed the work for about a year.
L&T has written to the Telangana government that it should bear the 4000 Plus Crores of additional burden. Earlier the concessionaire has given indications that it may quit the project if its demands are not met with. Telangana government can not afford that since it will send bad signals to the investors.
