Larsen and Toubro (L&T), the concessionaire of Hyderabad Metro Rail Project has announced the plan to disinvest his stake in the project along with some of its non-core assets. DK Sen, whole-time director and senior executive vice president (development projects), L&T, said this in a statement.
However, it is not clear if L&T will sell all or a part of its stake in the project. The company also did not hint at any timeline for this sale. “We will work out the divestment process of all these assets over a period of time,” the statement said. L&T is struggling with this project right from the start.
The estimated cost of the project is Rs 16,571 crore, which has risen to Rs 18,971 crore due to various reasons. Of this, Rs 13,500 crore was raised through L&T loans. In addition to this, COVID-19 has dealt with a big blow to the project with the services suspended for many months and the ridership coming down drastically even after the resumption.
The L&T Top Brass has reached out to Telangana Government for some financial assistance but there has been no response. The government only committed to giving soft loans which did not excite L&T much.
