Hyderabad: Telangana Chief Minister A Revanth Reddy on Sunday urged Union Urban Affairs Minister Manoharal and Union Coal Minister G Kishan Reddy to expedite appointment of SBICAPS as a consultant for the valuation of Hyderabad Metro Rail Phase 1and prepare a report for Metro Phase 2, in line with the decision taken last month.
In separate letters to the two Union Ministers, he recalled the decision taken during the meeting in Delhi on June 24 in the presence of Manohar Lal, Kishan Reddy and Railway Minister Ashwini Vaishnaw to appoint SBICAPS as the consultant for valuation and financial examination of Metro Phase 1 for facilitating its takeover by Telangana government.
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According to him, it was also agreed during the meeting that SBICAPS would also examine possible options for refinancing the existing high-cost debt of Phase 1 and study the financing structure for Phase 2, including suitable long-term debt options and funding arrangements.
He pointed out that the assignment to SBI Capital Markets Ltd (SBICAPS) was supposed to be entrusted immediately, so that the integrated exercise relating to the Phase 1 takeover and Phase 2 expansion could commence without delay.
The CM stressed that early appointment of the consultant is essential, as the valuation of Phase-1, the refinancing of its debt and the financial structuring of Phase-2 are closely interlinked and need to be examined together.
However, despite the considerable lapse of time since the June 24 meeting, SBICAPS has not yet been entrusted with the assignment, and the Terms of Reference have not been finalized, he said.
The prolonged process for takeover of Phase-I is creating operational uncertainty and day-to-day challenges for the project, he said.
At the same time, the delay is also affecting the sanction of the Detailed Project Reports (DPRs) for Phase 2 and the tying up of suitable funding arrangements. This is postponing project implementation and is likely to increase the cost of Phase 2 due to time overrun and escalation, he said.
"I would, therefore, request you to kindly have the assignment entrusted to SBICAPS at the earliest and have the Terms of Reference (ToR) finalized and communicated to the Government of Telangana," he said in the letter to Manohar Lal.
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The Chief Minister requested Kishan Reddy's personal intervention to take up the matter with the Union Ministry of Housing and Ministry of Railways so that the assignment to SBICAPS is entrusted at the earliest and the ToR are finalized and communicated to the Telangana government.
