The Andhra Pradesh government has decided to invite fresh global bids for the Rs 12,200 crore (Rs 122 billion) Hyderabad Metro Rail Project that was taken away from Maytas Infra after funding related problems.
The process will be initiated on July 16 and completed by November 15, according to state municipal administration minister Aanam Ramanarayana Reddy.
"We want to put the Metro on tracks within the next three to four years," the minister told reporters soon after a high-level review meeting on the HMR Project, chaired by Andhra Pradesh chief minister Y S Rajasekhara Reddy [ Images ] in Hyderabad on Monday.
Last week, the state government cancelled the contract awarded to Maytas Infra-led consortium after it failed to tie up funds despite a three-month extension. Maytas Infra is promoted by kin of disgraced Satyam [ Get Quote ] founder B Ramalinga Raju [ Images ] [ Images ].
Failure to mobilise funds forced the government to take stock of the project and firm up a decision on cancelling the award.
Accordingly, the chief minister discussed the project with the municipal administration minister and top officials in Hyderabad on Monday.
"Everything else about the project, including the cost, will remain the same. If necessary we will utilise the viability gap fund offered by the government of India [ Images ]," Ramanarayana Reddy said.
In view of the past experience, the bid security for the project was enhanced from 0.5 to one per cent, implying that the successful bidder would have to pay Rs 120 crore (Rs 1.2 billion) to the state government.
The Rs 60-crore (Rs 600-million) bid security paid by Maytas consortium would not be refunded, the minister added.
Replying to a question, he said there was no scope for re-opening the old bids submitted by qualified companies.
"Since we have decided to invite fresh global bids, the entire process will start from the pre-qualification stage. Companies that qualified previously will have to come through the pre-qualification route now and submit fresh bids," Ramanarayana Reddy said.