L&T backs out of Hyderabad Metro Rail Project ?

Larsen and Turbo, the construction company of the Hyderabad Metro Rail project has threatened the Telangana government to back out from the project. Telangana government has put asked the project to go under ground at places where there are heritage buildings. However the company says going under ground is not feasible financially and technically since the construction of pillars in the most areas is complete. However the government is not flexible in addressing the concerns of L&T so the construction major had informed the government that they can not go on with the project.

The company is just months away from opening the first Metro rail service between Nagole and Mettuguda. Changing of design at this stage will mean that there should be a new study of technical, commercial and financial feasibility which will consume sizeable time. Also there will be a delay in land acquisition in high-density traffic corridors in Hyderabad and there is always the problem of rising commodity prices and interest rates.

Experts say this kind of muscle flexing attitude of TRS government will do no good to Hyderabad city or the Telangana state. This will send wrong signals to investors both domestic and global. Such signals may also make it difficult for the government to retain and attract investments in the new state.”