A. Revanth Reddy writes to Union Ministers Manohar Lal Khattar and G. Kishan Reddy seeking early approvals and appointment of SBICAPS to avoid project delays.
Hyderabad: Chief Minister A. Revanth Reddy has written to Union ministers Manohar Lal Khattar and G. Kishan Reddy, urging them to help the state government secure swift approvals for the Hyderabad Metro Rail (HMR) Phase-II expansion and the process of taking over Phase-I operations.
In separate letters addressed to Union ministers on July 4, the Chief Minister noted that the prolonged process for taking over the HMR Phase-I was creating operational uncertainty and day-to-day challenges for the project. The delay also affected the sanction of the Phase-II detained project reports (DPRs) and the tying up of suitable funding arrangements, and postponing the project implementation was likely to increase the cost of Phase-II due to avoidable time overrun and escalation.
Referring to key decisions taken during high-level meetings held on June 23 and 24, Revanth Reddy stressed the need to appoint SBI CAPS (Capital Markets Limited) as the nodal agency to handle valuation of Phase-I assets, refinancing of high-interest loans, and preparation of a comprehensive financial plan for Phase-II.
“During the meeting, it was agreed that SBI CAPS, an agency empanelled by the government of India for such assignments, would be entrusted with the valuation and financial examination of the Hyderabad Metro Rail Phase-I for facilitating its takeover by the government of Telangana,” he pointed out in a formal letter addressed to Union minister for housing and urban affairs Manohar Lal Khattar.
The Chief Minister noted that it was further agreed that the assignment to SBI CAPS would be entrusted immediately, so that the integrated exercise relating to the Phase-I takeover and Phase-II expansion could commence without delay. Early appointment of the agency is essential, as the valuation of Phase-I, the refinancing of its debt and the financial structuring of Phase-II are closely interlinked and need to be examined together.
“However, it is brought to my notice that, despite the considerable time that has elapsed since the meeting, SBI CAPS has not yet been entrusted with the assignment, and the Terms of Reference have not been finalised and communicated to the Government of Telangana,” he added.
Revanth Reddy also urged Kishan Reddy for his intervention, while reminding him about the recent meetings with Union railways minister and also Union urban affairs minister. “As you are aware, Hyderabad Metro Rail Phase-II is of immense importance to the future growth and mobility needs of Hyderabad,” Revanth Reddy stated.
