Hyderabad: The Telangana government has extended the deadline for the takeover of Hyderabad Metro Rail from Larsen & Toubro from March 31 to April 30.

According to a Deccan Chronicle report on Friday, April 3, a source had informed that due to the financial commitments between the state government and L&T with regard to acquiring the company’s debt of Rs 13,000 crore and equity of Rs 2,000 crore, the process has been extended to another month.

The report also cited official sources who informed that the state government has already secured approval from the Indian Railway Finance Corporation (IRFC) for a loan amounting to Rs 13,000 crore with low interest rates, out of which 75 per cent will be paid in Japanese Yen and the remaining 25 per cent in Indian rupees.

The delay is due to the process of obtaining the 75 per cent loan amount from IRFC in Yen, which could take a month’s time to be processed.

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According to the DC report, the interest rate on Yen is 1.5 to 2 per cent, whereas the interest on rupee loan is 25 per cent, which would bring it to a consolidated interest of around 3 to 4 per cent, as against the present interest rate of 10 per cent being paid by L&T to a consortium of its lending institutions for the Rs 13,000 crore debt.

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