Telangana Government has on Friday permitted the Managing Director, Hyderabad Metro Rail (HMR), to sign the Share Purchase Agreement (SPA) with L&T Hyderabad Metro for ₹15,000 crore.
In an order issued today, the government also approved the availing of a ₹13,651 crore loan sanctioned by Indian Railway Finance Corporation for a period of 20 years.
It also approved provision of a debit mandate in favour of the Reserve Bank of India (RBI) in connection with the guarantee extended to IRFC on behalf of LTMRHL for the loan proposed to be sanctioned by IRFC.
With reference to staff, the order said 115 LTMRHL employees will be continued for a period of one year at HMRL’s cost (approx. ₹24.3 crore per annum).
The services of 7 CXO-level employees of L&T will be utilised for a period of six months for advice and assistance in an advisory role on metro operations and to extend other necessary support at L&T’s cost.
In February, the State cabinet approved the acquisition of 100 per cent equity stake in Phase-I of the project. The transaction includes approximately ₹13,000 crore in existing debt, along with payments towards L&T’s equity investment.
The State Cabinet, which met on Thursday, approved a cabinet sub-committee’s final recommendations on the modalities of the takeover and issued the order today.