If someone thinks that the stand off between Telangana government and L&T regarding the Hyderabad Metro Rail Project is solved, then they are mistaken. Highly placed sources tells us that L&T still stands by its opinion that the project is not viable after the state division and is looking to invoke the ‘force majeure’ clause in their contracts to renegotiate the terms of their projects.

L&T is reportedly seeking legal advice regarding the force majeure which allows them to revisit the business terms to protect their interests in the event of risks that are beyond their control, adversely affecting the viability of the business.  Recently Telangana government in its presentation to Finance Commission also stated that the new state was suffering erosion in its tax base and this can further increase once Hyderabad ceases to be the common capital of both the Telugu states.

It is said that several other companies established under Public Private Partnership are also planing to invoke the same clause in Telangana. And some other companies are in dire situation and on the verge of closing down due to severe power problems in the states. Seems like trouble is brewing for the newest state of the country.