Andhra Bank to provide Rs 236.5 crore loan to Hyderabad Metro

Andhra Bank to provide Rs 236.5 crore loan to Hyderabad Metro

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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.

More Details:

  1.  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.
  2.  In case the HMR fails to make any payments due to the bank, the Government has also agreed to make the loan repayments.
  3.  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.
  4.  The HMR is the special purpose vehicle of the Hyderabad Government.
  5.  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.
  6.  Initially, the HMR touched base with funding agency HUDCO but after holding detailed discussions, the Government suggested that loan be taken from Andhra Bank.
  7.  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.
  8.  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

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