The Andhra Pradesh Cabinet has approved the Nava
Bharat-Maytas consortium as the BOT (build-operate-transfer)
developer for the Hyderabad Metro Rail Project.

The consortium was the lowest bidder for the Rs 12,132-crore project.

"The Cabinet has also approved the extension of the Metro Rail
Corridor-III (Shilparamam-Habsiguda) by 4.77 km up to Nagole and
also the Draft Concession Agreement (DCA) for the project," Mr Anam
Ramnarayan Reddy, Andhra Pradesh Information and Public Relations
Minister, said after the Cabinet meeting here on Monday.

He added that the consortium was informed that though it had time to
complete the project over the next five years, it must do so in four
years so that the metro is operational by the beginning of 2011.

The Cabinet also gave its nod for the DCA which is based on the
Central Government's Model Concession Agreement.

Reservation for BCs

Mr Reddy said that it was decided to provide 33 per cent reservation
to backward castes in Assembly and Legislative Council. "This is
based on the recommendations of a Cabinet sub-committee. We hope
that a unanimous resolution will be adopted in the Monsoon Session
commencing shortly. After which we intend to send it to the Union
Government for their approval," he added.

The State Cabinet has also approved the additional loan of Rs 265
crore taken from the World Bank for the Andhra Pradesh Rural Poverty
Reduction Project known at Indira Kranthi Patham.

"The project was scheduled to be closed by September 2008. However,
now it will be continued till September 2009 to enable the Mandal
Samakyas and village organisations to attain managerial and
financial self sustainability," he said.

The Council of Ministers also ratified a decision to adopt the
Central Chit Fund Act, 1982 instead of the AP Chit Fund Act 1971.

"Since all the amendments proposed to the AP Chit Fund Act are
contained in the Central Chit Fund Act, it was decided to bring this
change," he said.

According to him, if the Central Act is adopted, it will provide
more security to subscribers and also provide 100 per cent security
equal to chit while the State Act provides only 50 per cent
security. It also provides only 40 per cent discount in the bid
amount, while on the other hand there is no such provision in the
State Act.

The Cabinet also decided to modify the Ordinance for establishing
the Andhra Pradesh University of Law with headquarters in
Visakhapatnam and campuses at Nizamabad and Kadapa.

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