Hyderabad: Stalled property acquisitions at Sultan Bazar and at a few other sections, shifting of pipelines and road-widening for the Metro Rail project will be now taken up with the Government permitting HMR (Hyderabad Metro Rail) Limited to take a term loan of 236.50 crore (approx US$ 36.7 Million) from Andhra Bank.
- The Government has not only given a counter guarantee to the loan agreeing to the terms & conditions of the bank, but has also agreed to provide a budgetary support of 59.14 crore (approx US$ 9.2 Million) for margin money.
- In case the HMR fails to make any payments due to the bank, the Government has also agreed to make the loan repayments.
- The loan is for 10 years with an additional 3 years’ moratorium & the Government has advised the HMR to go for outside funds since it was facing a budgetary crunch.
- The HMR is the special purpose vehicle of the Hyderabad Government.
- It was formed as a facilitating body to help discharge CA (Concession Agreement) obligations on behalf of the Government to provide right of way to L&TMRH (L&T Metro Rail Hyderabad) building the project after it bagged the contract.
- Initially, the HMR touched base with funding agency HUDCO but after holding detailed discussions, the Government suggested that loan be taken from Andhra Bank.
- N.V.S. Reddy HMR MD said,“This loan is only to supplant whatever the Government is giving to provide right of way in a few remaining sites so that we can expedite the work in this season.
- With the project reaching the advanced stage & with at least 2 sections of the 3 corridor project to be opened later this year
– Nagole to Begumpet on Corridor 3
– Miyapur to S.R. Nagar on Corridor 1