L&T aims to divest stake in Hyderabad Metro in 2.5 yrs: Report
Mumbai: Engineering and construction major Larsen & Toubro (L&T) aims to sell its share in the Hyderabad Metro project within the next two, or possibly two and a half, years, Moneycontrol reported.
In an interview with Moneycontrol, Chief Financial Officer, R Shankar Raman, on Wednesday said L&T will be able to proposition the Hyderabad Metro project as a lucrative project to interested investors.
He also mentioned that over the next two to two and a half years, L&T will continue in selling the land parcels associated with the metro project. Some headway has already been made in this regard between July and September “by selling almost 17 acres of the land that was attached to the metro project," he told Moneycontrol.
Raman told the news organisation that while there has not been any significant development in L&T's divestment plans at the moment, the company has made progress in improving the profile of the Hyderabad metro project.
He stated that it was improving the profile of the project and enhancing its economic prospects on a quarter-on-quarter basis. He also added that the value realised from selling the land would not only generate some profits from time to time but also help unlock value that could be used to pay down the debt.
Raman also noted that L&T is in the process of determining the optimal time to announce revised tariffs for its Hyderabad metro projects. This strategic move aims to enhance the project's viability and make it more appealing to potential buyers.
"We are still operating (the Hyderabad Metro) at the first tariff that was fixed. The tariff fixation committee has recommended that the project is due for a revision," Raman was quoted as saying by Moneycontol, adding, that L&T is identifying "the right time window for to announce the revision."
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