L&T Metro Rail in talks with IIFCL to raise Rs 1000 cr
Hyderabad: L&T Metro Rail (Hyderabad) is in talks with India Infrastructure Finance Co Ltd to raise Rs 1,000 crore through the external commercial borrowing (ECB) route for the city's metro rail project.
"Continuous dialogue is on with IIFCL (India Infrastructure Finance Co Ltd). It has progressed quite well and raising a Rs 1,000-crore loan should happen in couple of months," L&T Metro Rail (Hyderabad) Ltd Chief Executive and Managing Director V B Gadgil, told reporters here today.
"There will be saving of around 5 per cent on interest rates. The advantage of ECB is that we get long-term loans ranging for 25 years," he said.
L&T is developing the Rs 16,500-crore Hyderabad Metro Rail project, which is the biggest urban infrastructure project undertaken as a public-private partnership in India.
The elevated metro rail project consists of three corridors, covering a total distance 71.16 km, comprising 66 stations.
Banks have lent over Rs 11,000 crore to the company as term loans for the project, and out of that it has already drawn Rs 750 crore.
The Centre has also approved a viability gap funding (VGF) of Rs 1,458 crore to develop Hyderabad Metro Rail.
Answering a query, he said raw material (cement and steel), manpower costs and interest rates continue to remain a cause of concern.
"The rupee devaluation is also a concern. But fortunately, we have already placed the orders, and for a couple of orders, it is a 100 per cent rupee payment. But concern exists about payments to buy signalling and telecommunication equipment which are imported," he said.