BL reported that after scrapping the INR 12,132 crore project contract awarded to the Maytas Infra led consortium, the Andhra Pradesh Government recently decided to call for fresh global bids for the Hyderabad Metro Rail Project. While the project cost would remain the same, the government has decided to increase the caution money from 0.5% of the contract to 1%, which works out to INR 120 crore. Mr Anam Ramnarayan Reddy State minister for Urban Development said "The State Government is keen to put the project on fast track and expects to make up for the lost time due to cancellation of contract awarded to Maytas Infra."

Speaking to reporters after a review of the project with Dr YS Rajasekhara Reddy CM of AP, Mr Reddy said while the project cost would remain the same, the Government expects to take this up now basing on viability gap funding mode. This is in contrast to earlier approach of awarding the contract to Maytas Infra, which had based the project on commercial exploitation of real estate. In fact, it had promised to pay back about INR 30,000 crore during the contract period and drew flak from experts. for more details visit