L&T to demand more compensation from TS!

The concessionaire of Hyderabad Metro Project, Larsen and Toubro is proving to be a hard nut to crack for the Telangana government. KCR government has proudly announced that L&T has agreed to make the changes suggested by the government at three place. But in reality, L&T is yet to commit for the changes and the commitment will be given only after they are satisfied with the compensation promised by Telangana government.

Early estimates by the government calculate the compensation package to be about 1000 Crores for the proposed alignment changes. However it is said L&T is not at all happy with 1000 Crore compensation. According to the sources, these changes will delay the project by a bare minimum of 1 year and during this period, the amount invested in the project will cost them more than 1000 Crores as interest.

Which means the compensation package planned by Telangana government will not go in to the project but will barely meet the extra expenses incurred via interests.So in layman terms, the package to be demanded by L&T in its meeting with the government will be more than 2000 Crores which will be insanely high for the newest state of the country. If both the parties stick to their arguments, then we may again arrive at a deadlock situation which further complicates the project itself.