Rel Energy, Essar Cons, GVK to bid for Hyderabad's metro

Reliance Energy, Essar Constructions and GVK are among five companies bidding for the Rs 8,500 crore Hyderabad Metro Rail Project.

It is one of India's largest urban infrastructure projects and the Andhra Pradesh government has shortlisted five international consortia to bid for it.

Covering 67 kilometres and over three routes, this project is bigger than the Delhi Metro and has a timeframe of 35 years.

The Andhra Pradesh government will hold 11% stake in this public-private partnership and the bidding is for the balance 89%. And 18% of the capital will be raised via equity, 42% through debt, and the balance will be subsidised by the Government of India.

NVS Reddy, Managing Director, Hyderabad Metro Rail, said, “We will not give this project any operational subsidy but a one-time capital subsidy. As per our financial model, 40% of the cost will be given as viability funding by the Government of India.”