L&T's letter to Govt for Project Takeover

This can’t be a routine letter. The 8-page letter is provided below with each page an image. I managed to get from a friend in the media.

Subject: Hyderabad Metro Rail: Project Takeover Proposal

The letter by L&T Metro’s MD, Mr. Gadgil, to the MD of HMR is dated 10^th September 2014. It runs into 8 pages. In the letter, Gadgil cites 7 letters of correspondence between L&T, HMR and Chief Minister of erstwhile AP between 6 February to 15 July 2014. He raises two main issues in the letter. 1. Delay in providing Right of Way (ROW) for faster execution of works as per the Concession Agreement. Providing ROW is the obligation of the Govt of AP/T. 2. He raises the changed circumstances in the status of Hyderabad due to division of AP and its adverse impact on the financial viability of the metro.

In point 16, it is argued that “Prior to bifurcation of Andhra Pradesh, Hyderabad was the capital city of a state which was well developed, espousing various eminent districts and port towns. However, now it is the capital city of a smaller state with lesser resources than the undivided Andhra Pradesh……Further, there is reduction in the strength of representation of the State in the Parliament. Thus, the position of Hyderabad in drawing investments, both the Central Government and private sector has altered. Consequently, the potential returns from its real estate will get reduced…The change in the status of Hyderabad has resulted in a significant change in the economic and political outlook of Hyderabad, thereby causing material adverse impact on the financial viability of the Project”.

L&T did not think that AP will be divided. In point 22, he mentions that various agitations have been made, without any success, for creation of Telangana. So, we could not anticipate the bifurcation of AP till the AP Reorganisation Bill was introduced.

L&T seems to have hoped that the GHMC will be made a UT. In point 23(iii) he mentions that the creation of Greater Hyderabad in 2007 was viewed “as a precursor to converting the city into a Union Territory, if the state was split”.

In point 24, he states …”it would be most appropriate that the GoT should take over the Project and the underlying contract from the Concessionaire. The GoT should do so by restituting the Concessionaire in a manner whereby the Concessionaire’s property and entitlements are returned to it”.

If the L&T continues with this project it has to explain how it will become financially viable hereafter.

L&T wants the Metro to be taken by the Govt of Telangana

L&T giving up on Hyderabad Metro? It will be sensation. This came too sooner than expected. L&T is known to have written to the Hyderabad Metro Rail Ltd (which represents govt of Telangana) that they can't proceed with this project, and asked the govt to take over it. Today's top headline in Andhra Jyothy paper. L&T seems to have repeatedly mentioned about non-provision of Right of Way due to which there is significant cost escalation, and bifurcation of the state. It feels that there is reduced prospects for financial viability of the metro in Hyderabad. It looks like that L&T believed that the state will not be divided, or Hyderabad will be an UT or a joint capital in a proper sense. My comment is quoted in the second picture given below.

Secunderabad Clock Tower getting dwarfed by Metro pillars

The famous Clock Tower in Secunderabad getting dwarfed by the pillars of the metro. It is a heritage structure. You can see the Clock Tower in the distance (Click on the photos for a better view). Tall pillars (more or less equal in height to the Tower) will be constructed close to the Tower which poses threat to the stability of the structure itself. Sultan Bazaar also lies in this corridor. Better to scrap this corridor-2 as the MMTS local train runs from Secunderabad to Falaknuma which can be strengthened easily.

KCR talks tough - Metro must change alignments

We are very glad that the Telangana Chief Minister, Shri KCR, has talked tough to the metro officials that the corridor cannot go overhead in front of the Assembly, and also thru Sultan Bazaar. We demand scrapping of the corridor-2 which goes thru Sultan Bazaar. We have given sufficient reasons to scrap this one. How L&T feels is no indication of the investor confidence in the TRS government which is a false bogey raised by some sections. Show L&T its place if it doesn't follow the govt's directive. (In the photo: Front page news item today in Andhrajyothy: 2 July, 2014).

KCR for Metro to go Underground at Assembly and Realignment at Sultan Bazaar

K Chandrashekhar Rao for realignment of metro rail

TNN | Jun 14, 2014.

http://timesofindia.indiatimes.com/city/hyderabad/K-Chandrashekhar-Rao-for-realignment-of-metro-rail/articleshow/36509872.cms

HYDERABAD: Telangana chief minister K Chandrashekhar Rao has all but stopped the Hyderabad Metro Rail project in its tracks. KCR made it clear in the Assembly on Friday that the metro rail would have to go underground near the Assembly and other heritage structures as well as near Sultan Bazaar. "There is no question of allowing the Hyderabad Metro Rail alignment going overhead in front of the Assembly building. It must go underground as in the case of the Bangalore metro project near the Vidhan Soudha," the CM told the House while replying to the debate on the motion of thanks to the governor's address to the joint session of Assembly and council.
If the CM has his way, the Hyderabad Metro Rail Limited and Larsen & Toubro, the builder and operator of the project, will have to change the alignment, a move that could not only delay the project but also escalate the cost. The heritage buildings and Sultan Bazaar come in the way of corridor 2 of the project than runs from Falaknuma to Jubilee Bus Station. While works on the other corridors are progressing fast, the authorities have not been able to take up construction on corridor 2 owing to protests from the traders of Sultan Bazaar, who would have to give up space in the existing alignment.
Even as the chief minister's stand came as a breather for the traders, KCR was not clear about how his government would make the L&T change the alignment. The concessioner agreement for the project imposes a force majeure clause, according to which the government has to pay monetary compensation to L&T if it seeks any change in the project.Even as the chief minister's stand came as a breather for the traders, KCR was not clear about how his government would make the L&T change the alignment. The concessioner agreement for the project imposes a force majeure clause, according to which the government has to pay monetary compensation to L&T if it seeks any change in the project.

Scrap Corridor-2; Sack Metro MD - Press Release

Scrap Corridor-2; Sack Metro MD - Press Release

AAP demands scrapping of Metro Corridor-2

AAP is the only party in Telangana (or AP) that has taken a clear position on the Hyderabad Metro Rail (HMR). AAP's Telangana manifesto has promised to scrap the corridor-2 and termed it the least useful corridor. The relevant portion of the manifesto is reproduced below:

AAP considers this as land and real estate project. AAP demands transparency and compliance with the Concession Agreement.

- All important documents of the HMR will be made available in the website of the HMR.

- Full compliance with the RTI Act.

- The land allocations to real estate of the L&T beyond the Concession Agreement will be reviewed and the concerned officers/departments will be held accountable.

- Modifying the Concession Agreement through Government Orders will not be allowed.

Corridor II (JBS to Falaknuma) should be scrapped.This is the least useful corridor and also it will wipe out the heritage area of Sultan Bazaar apart from demolishing thousands of properties.AAP government will scrap this corridor.

The bus transport and MMTS network will be strengthened The MMTS phase II will be completed on a priority basis to strengthen the public transport in the city and improve connectivity to the suburban areas.