SBI CAPS to value Hyderabad Metro Phase I assets for government takeover

SBI CAPS is scheduled to begin a fresh valuation of the Hyderabad Metro Rail Phase-I assets and conduct a comprehensive study on the funding of the Phase-II expansion network starting in the first week of July. The valuation report, which is expected to be submitted within three months, will guide the Telangana and Central governments in their decision regarding the proposed takeover of the metro network from L&T.

The appointment of SBI CAPS as the joint consultant was finalized during meetings held on June 22 and 23 in Delhi. Telangana Chief Minister A. Revanth Reddy met with Union Ministers Ashwini Vaishnaw and Manohar Lal Khattar to discuss the valuation of Phase-I assets, the proposed takeover from L&T, and the Phase-II expansion plan.

Unlike previous assessments, this fresh valuation will be conducted under the direct supervision of the Central Government. The Central Government is expected to issue formal orders shortly to allow SBI CAPS to commence the exercise.

Previously, IDBI Capital assessed the financial and legal aspects of the project, while Delhi Metro International Limited handled the technical evaluation. Those assessments valued the metro's ready-to-use assets at ₹19,136 crore and freehold assets at ₹22,102 crore. Based on these figures, the Telangana state government decided to acquire the project for ₹15,000 crore and signed a share purchase agreement with L&T on April 29.

Sources stated that SBI CAPS may either validate the earlier reports or undertake a completely fresh valuation. However, major variations in the final figures are not expected, though marginal changes could occur in the valuation of land parcels.

SBI CAPS had previously bid for the valuation tender but was not selected at the time because it quoted a higher price. The agency has prior experience in handling major government asset transactions in the state, including the takeover of Nizam Sugars.