The process for the proposed takeover of Hyderabad Metro Rail Phase‑I by the Telangana government and expansion of the Phase‑II network is set to gather pace, with SBI CAPS, the consultant jointly chosen by the Centre and the state, expected to begin work in the first week of July
HYDERABAD: The process for the proposed takeover of Hyderabad Metro Rail Phase‑I by the Telangana government and expansion of the Phase‑II network is set to gather pace, with SBI CAPS, the consultant jointly chosen by the Centre and the state, expected to begin work in the first week of July. The firm will undertake a fresh valuation of Phase‑I assets and carry out a comprehensive study of funding and other aspects of Phase‑II.
Official sources said the Centre is likely to issue formal orders shortly, after which SBI CAPS will commence the exercise. The consultant is expected to submit its report within three months, based on which the two governments will decide on the takeover and the roadmap for expansion.
The appointment of SBI CAPS was decided during Chief Minister A. Revanth Reddy’s meetings with Union ministers Ashwini Vaishnaw and Manohar Lal Khattar in Delhi on June 22 and 23. The discussions focused on valuation of Phase‑I assets, the proposed takeover from L&T and the Phase‑II plan. Unlike the earlier exercise, the fresh valuation will be conducted under the Centre’s direct supervision.
Earlier, IDBI Capital had assessed the financial and legal aspects of the project, while Delhi Metro International Limited carried out the technical evaluation. Based on their reports, the Metro’s ready‑to‑use assets were valued at ₹19,136 crore and freehold assets at ₹22,102 crore. Using these assessments, the State decided to acquire the project for ₹15,000 crore and signed a share purchase agreement with L&T on April 29.
Sources said it remains to be seen whether SBI CAPS will validate the earlier reports or undertake a fresh valuation from scratch, though major variation is unlikely. Marginal changes may arise in the value of land parcels, but the overall valuation is expected to remain largely unchanged.
SBI CAPS had also bid in the earlier tender but was not selected as it quoted a higher price. The agency, however, has prior experience in handling major government asset transactions, including the takeover of Nizam Sugars.
