It appears stalemate is continuing between L&T Company and the Telangana government over realignment and compensation, although it was reported that they both have come to consensus during a meeting between CM KCR and the Company Chairman AK Naik held last week.

According to available information, L&T Company is not happy with the Rs. 1000 crore additional payment said to be offered by the state government for this purpose, because it is not even sufficient to clear the interest on the huge loans that it taken from several financial institutions for this project. Probably, that is why it has asked the state government to allot some huge projects like constructing express highways, constructing 100 storied buildings that CM KCR is proposing around Hussein Sagar Lake etc. to compensate its losses. However, everyone knew that it may take some time to think about all those dream projects. So, it is to be understood that the metro project situation may be same as ever before.

Following CM KCR assurances to the L&T Company a Special Task Force (STF) has been formed to address various issues involved in the realignment of this second phase of the Metro project. STF is likely to hold a meeting with L&T Company representatives at Hyderabad today. They may discuss the issues raised by L&T Company Chairman AK Naik during his meeting with CM KCR last week, about realignment and compensation package.

However, CMO stated it is just a routine meeting to review the progress of the project and has no significance. So, unless L&T Company begins the second phase project works, one can’t assume ‘all is well’. Let us hope, Telangana government and L&T Company somehow manage to complete the second phase project also.