A lot of heat and dust has been generated on L&T’s letter to the Telangana government on the Hyderabad Metro status. But in a well rounded report on the issue, Times of India reports ” KCR finds himself in an unenviable situation: to uphold a marriage that he had never entered into. If the project collapses, it will be touted that the investment scenario in the new state is disastrous. This will lead to many potential investors being circumspect about putting their money in Brand Hyderabad. Again, this is a situation that the government of a fledgling state hardly wants.”

Calling the project as something flawed from Day 1, TOI further states “Had the prolonged slowdown following the meltdown of 2009 been reversed, L&T would have managed. But even as the rest of India recovered, Hyderabad continued to be weighed down by political uncertainties that drove down realty prices. This impacted L&T’s calculations. Now, the bifurcation of AP has come as the proverbial last straw for the project. Of the 259 acres of real estate to be given to L&T, the company proposes to set up three malls at Erramanzil, Punjagutta and Madhapur developing 0.5 million square feet of commercial space. In all, L&T has to develop 18.5 million square feet of commercial space. But this is near impossible considering that’s the total commercial space developed in the city in the last decade.”

READ the full copy of the Times of India report HERE. 

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