Engineering and construction major Larsen and Toubro has bagged the Rs 12,132-crore Hyderabad Metro Rail project by seeking the lowest viability gap fund from the state.The L&T sought a VGF of Rs 1,458 crore and outwitted the two rivals, the Anil Dirubhai Ambani Group and a consortium of Russian and Chinese companies, in the financial bid which was held on Wednesday.
The Transstroy-OJSC (Russia), CR 18 (China), BEML Consortium sought a VGF of Rs 2,200 crore and ADAG sought Rs 2,991 crore. Further, L&T also agreed to give revenue share to the state from 21st year of operations starting from 0.5 per cent.
The Union Government had agreed to provide a VGF of Rs 2,362 crore for the project and it was felt that the state may have to provide additional VGF of Rs 1,491 crore.
The project will be implemented under the Design, Build, Finance, Operate and Transfer mode and the concession period for L&T is 35 years which can be extended by another 25 years.