The Hindu Business Line : NEB to float SPV for metro rail projects

NEB Infrastructure Ltd, a focused metro rail project developer, has decided to form a special purpose vehicle (SPV) to drive metro projects in India. It would be a 50:50 joint venture between NEB and international financial institutions (FIs).

According to the Chairman and Managing Director of the Bangalore-based company, Mr S. Nagaraj, discussions are at an advanced stage with FIs and the SPV should be ready by March next year.

With metro rail project being planned in several cities such as Ahmedabad, Jaipur, Kochi and Chennai the demand for expertise to implement them would grow. "NEB is preparing to position itself in an advantageous position in this development phase," Mr Nagaraj told Business Line.

Lanka project

The NEB Infrastructure-led consortia signed a Letter of Intent (LoI) with the Board of Investment of Sri Lanka to set up a Mass Rapid Transit Rail System in Colombo on May 9. The project when completed is expected to cost around $1 billion.

The initial feasibility study for the project, funded and carried out by NEB Infrastructure will be completed in four months. The NEB-led consortia, includes Seimens of Germany; Opus Malaysia and UTI Bank.

Once the project is awarded, the consortia would implement it on a turnkey basis, he said.

Stating that this was the first time that than an Indian infrastructure company was involved in bagging a project abroad, Mr Nagaraj said NEB along with Magna Allmore of Malaysia, Siemens, ETA Dubai and Nagarjuna Construction Company, Hyderabad consortia were among those pre-qualified for the proposed Hyderabad Metro Rail Project.