Metro controversy reaches A-G, L&T seeks financial aid
The row between Metro Rail builder L&T and Hyderabad Metro Rail has reached the Advocate General.
Telangana state Chief Secretary S.P. Singh held discussions with L&T and HMRL officials to resolve the issues between the two.
The issue of additional payments to be made by the state government to L&T due to change in law was referred to the Advocate General. Mr Singh asked the two sides to submit their arguments to the Advocate-General.
L&T has sought time to consult the management.
According to sources, L&T told Mr Singh that change in law payments had to be made as per the provisions of Concessionaire Agreement (CA), and that it was due `104 crore at the end of 2015-16.
HMRL managing director N.V.S. Reddy said that as per the relevant provisions of the CA, the concessionaire was entitled to change in law payments only after commencement of commercial operations.
The L&T managing director told Mr Singh that as per the CA provisions, financial support was required to extend Corridor III from Hitec City to Raidurg, and that the government needs to issue the change of scope order.
Mr Reddy said that while allotting 16 crore of prime land to the concessionaire at Raidurg, the government had made the conditional offer that the concessionaire would have to carry out extension of the corridor to Raidurg without seeking financial support or issue of change of scope order and others.
He said that there was also a likelihood that the 5.5-km stretch between Mahatma Gandhi Bus Station and Falaknuma not being executed; as per the CA the concessionaire would have to return 80 per cent of the costs saved with non-execution of this portion. Mr Singh said a view was needed to be taken on the net financial effect of not taking up a stretch in the Old City and that of extending Corridor III up to Raidurg.