The chief executive officer and managing director of L&T Metro Rail, Hyderabad. V B Gadgil, met the Chief Minister K Chandrasekhar Rao and Chief Secretary Rajiv Sharma on Wednesday after reports appeared in certain media casting apprehensions about the viability of the project and that L&T offered to quit the project over a number of reasons.
- L&T chief says project is viable as of now
- Trashes reports of company opting out of the project
- We are awaiting State govt decision on realignment issue
- Cost escalation is bound to an impact the project
Gadgil said that the reports distorted the correspondence between the project concessionaire, in this case the L&T and the State government. He further added, “Several letters are exchanged in a project of this magnitude and it was normal for a massive project of this nature to have distorted correspondence, especially in an urban environment. The correspondence between the two partners is routine matter which helps us understand and resolve the issues in the interest of the people.”
It may be recalled that the Metro Rail project had hiccups due to issues such as realignment to avoid the Sultan Bazaar and Assembly Building. As a consequence, work stopped on certain corridors. L&T has been in correspondence with the State government and is awaiting a decision on the issue of realignment.
Gadgil said there was no official communication of realignment except for stopping of work at some parts. But the cost escalation was bound to have an impact on the project. “The project continues to be viable as of now but viability has to be checked every now and then in the long run.”
The project is expected to be hit with escalation of cost between Rs 2,500-Rs 3,000 crore. The company had spent Rs 4,800 crore so far and 28 per cent of the project has been completed. The total cost of the project is pegged at an investment of Rs 14,132 crore.
Minister for IT K T Rama Rao, while speaking to media persons, alleged that it was the idea of certain sections to shift focus from the Medak by-elections. He further added that the Chief Minister would be taking a decision soon on the realignment issue. Allam Narayana, Telangana Press Academy chairman said, “It is a malicious campaign by a select media to tarnish the image of Telangana and to hurt the sentiments of the people of the region by casting apprehensions on the prestigious project.”
A press release by L&T stated that the letter dated September 10 was really a part of the long correspondence between L&T and the then Government of Andhra Pradesh and now with Government of Telangana.
We have been working in close tandem with officials of the Government of Telangana at all levels in a very coordinated and cooperative manner to make sure that all issues and challenges are resolved amicably.