Hyderabad, July 17: The state cabinet has decided to give its final approval for the Metro Rail project at its next meeting as some technical issues remain to be sorted out.
It was informed about the progress of the project and the technical committee’s approval to allot the project to Larsen & Toubro Ltd.
The cabinet, which met here today, complimented chief minister K Rosaiah for taking the initiative to see the project through as the previous contract was scrapped.
The chief minister thanked prime minister Manmohan Singh, Union finance minister Pranab Mukherjee, urban affairs minister S Jaipal Reddy and UPA chairperson Sonia Gandhi for helping in his endeavor.
Briefing the media on the decisions taken at the cabinet meeting, municipal administration and urban development minister A Ramanarayana Reddy said that the L&T had sought 12 per cent viability gap funding (VGF) amounting to Rs 1,458 crore from the government and stood L1 in financial bidding.
Other companies, Transstroy India-OJSC Transstroy Russia- CR18G consortium, had quoted a VGF of 18 per cent i.e. Rs 2,200 crore and Reliance Infrastructure Consortium had quoted 24 per cent VGF i.e. Rs 2,991 crore.
The Centre had sanctioned Rs 2,363 crore for VGF, the minister said, adding that now only Rs 1,458 crore was needed from it as L&T sought only that much.
He said the chief minister had instructed the municipal administration department to monitor the project and see that it was completed in four years’ time.
Ramanarayana Reddy said that the L&T had to make the financial closure by January next year and the works would be grounded around the same time.
The cabinet approved two draft bills with regard to the accounting system of urban local bodies (ULBs) and facilitating taking agricultural land on lease by self-help groups.
MAJOR DECISIONS
* ULBs to switch over double-entry accounting method * SHGs can legally take on lease one-acre land for 5 years for cultivation * New social security pension for 1.68 lakh persons * 50 acres for food processing plant in Chittoor dist * 18 new posts in R&B dept * 6 more deputy EOs for TTD
–Agencies