L&T to Exit from Hyderabad Metro Project?

Worrisome Reports are emerging from media sources that the Concessionaire of Hyderabad Metro Rail Project, Larsen and Toubro (L&T) is looking to put its share in the project on sale. The Prestigious project is already running well behind its schedule and there are reports of a rift between the concessionaire and the Telangana government as well.

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L&T had taken a decision to part with the project and is gearing up for a hunt internationally to find a potential buyer. Nagole – Mettuguda, Miyapur – SR Nagar routes are complete while works in Miyapur – Dilshukhnagar, MGBS – Falaknuma and Nagole – Hitech City are going on at snail pace. Even the Land Acquisition at some key places are not complete till date.

The project started with an estimation of 14132 Crore and now scaled up to another 3000 Crore. L&T so far invested 10000 Crore in the project. L&T is of the opinion that these ordinate delays are making the project not viable. Also, the real estate in Hyderabad is rising but not up to the expectations of the concessionaire. In the wake of all this, L&T is looking to get out of the project.

L&T already gave the indications of the exit one year back, but later put the proposal on the backburner. But once again the talks are revived sources say. If at these reports turn to be true and if, L&T really sells its stake it will be a big blow to the image of Hyderabad and Telangana government in the investors’ eyes.