Cabinet approval for elevated metro project for the capital has cleared the way for the formation of a separate concessionaire company. It will have two directors from Hyderabad Metro Rail Limited (HMR) and the rest from the Maytas-led consortium including a new Managing Director.While HMR will closely supervise the overall work and functioning, the new company to be formed in about a month's time will construct and run the metro rail. The consortium has to register three names for the new entity with the Registrar of Companies and one will be chosen, informed HMR Managing Director N.V.S. Reddy on Monday.

Ownership rights

He was categorical that the ownership rights will continue to remain with the Government by virtue of having one ‘Golden Share' which will give veto powers on key issues and is equal to 26 per cent equity holding. The Government has already decided to have an equity participation of 11 per cent or Rs. 250 crore in the new company. The new company will have the right to lease the land or develop properties built over the three depots and over the parking/circulation areas of about 33 of the 66 stations for the concession period of 35 years. It cannot sell any of the land. At the end of the period, all the developed properties along with other metro rail assets would be handed over to the Government, he clarified.

Work on three corridors of 71.16 km will be taken up under the Design, Build, Finance, Operate and Transfer (DBFOT) basis and the technical specifications, performance criteria and safety standards are as per the Draft Concession Agreement, said Mr. Reddy.Construction and operation of the system will be supervised by an independent engineer to be selected through a global tender. The Maytas-led consortium was the lowest bidder for the Rs. 12,000-odd crore project as they did not seek any Government grant which was on offer to the tune of Rs. 4,800 crore and instead offered to make payments of Rs. 30,311 crore spread over the concession period.

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