Maytas Metro Ltd (MML) has signed a formal concession agreement with the Indian Andhra Pradesh Government to build and operate the Hyderabad Metro rail project.
The deal, worth Rs12,132 crore will see the company retaining 26% in the project while Nava Bharat would hold 16 per cent. The remaining shares would be retained by Nava Bharat and IL&FS as well as the state government, which holds 11%.
The 71km metro rail project is being built to ease the traffic congestion along the busy roads of the Indian State and will be operational by September 2012. Work on the project is planned to start in six months time.
India's first two-track elevated transit system is expected to carry about 1.7 million passengers a day by 2012 and 2.8 million passengers by 2021.
The metro rail will run on three high-traffic-density corridors and will operate through 66 railway stations.
Managing Director of Hyderabad Metro, Mr NVS Reddy said that they have responded to concerns over traffic problems during construction by consulting with engineering staff from the College of India.
"The company will soon call for global tenders to select a partner to ensure scientific management of traffic and minimise inconveniences during construction," Reddy said.
The Maytas consortium declined a central grant for the project, which according to government was an important factor in clinching the deal.
By Daniel Garrun.
