The Hyderabad metro rail project is at stake after Larsen and Toubro Ltd (L&T) threatened to quit stating issues related to project viability after separation of Telangana from the state of Andhra Pradesh.
L&T sent a written letter to Telangana government offering it to take over the ₹16,375 crore metro project, stating that the bifurcation of the state has caused an impact on the financial viability of the project.
"The change in the status of Hyderabad has resulted in a significant change in the economic and political outlook of Hyderabad, thereby causing material impact on the financial viability of the project," Mint cited an excerpt from the letter.
"The change in circumstances is having a material adverse effect on the project and shall continue to have such effect. The above facts are sufficient to excuse us of our obligation...," the letter added.
Raising the aforesaid concern, V. B. Gadgil, Chief Executive & Managing Director of L&T Metro Rail (Hyderabad) said that he has asked the government to either solve the issues or take the project under their supervision, adding that if the issue is resolved, they would continue with the project.
However, later, clarifying its stand on the completion of the project, the company said it is keen on building the metro but demands the cooperation of the state government.
"Our commitment is to complete this prestigious project expeditiously as per schedule with all the support and cooperation of the state government and the people of Telangana," the company said.
The 71.2 km metro rail project is said to be India's biggest infrastructure project getting investments from public-private partnership.