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Incurring heavy losses, Gurugram Rapid Metro to be managed by state govt

Incurring heavy losses, Gurugram Rapid Metro to be managed by state govt

Gurugram: Justice D.K. Jain, appointed by NCLAT to oversee the IL&FS resolution process, on Friday approved the transfer of the Gurgaon Rapid MetroRail to Haryana Urban Development Authority (HUDA).

It will now be incumbent on the Haryana government on what the way forward will be for the Rapid Metro Rail.

The Haryana government could either choose to run the Rapid MetroRail itself or subcontract it to another party.

This is pursuant to the National Company Law Appellate Tribunal order of August 8 wherein - Rapid MetroRail Gurgaon Limited (RMGL) and Rapid MetroRail Gurgaon South Limited (RMGSL) - being red entities were required to seek prior approval from Justice (retd), Jain, former Supreme Court judge mandated to oversee the IL&FS resolution process, before selling, transferring, encumbering, alienating, dealing with or creating any third party right, title or interest on any movable or immovable assets.

The new development comes at a time when the financial situation of Gurugram rapid metro was in dire straits and it was expected that by next week it may suspend its operations.

The rapid metro was constructed by IL&FS Infrastructure in two phases. In the first phase, the company built 5.1 km elevated track, connecting National Highway No 8 at Shankar Chowk to Sikandarpur DMRC station, covering 6 stations.

Built-in three years for Rs 1,450 crore, the service was opened for public on November 2013.

The company expected office-goers from Delhi to the cyber city to inter-change at Sikandarpur & use the rapid metro. But it didn't succeed a.

Higher costs for travelling, less focus on last-mile connectivity and lesser frequency of the movement of trains are resulting in many residents still relying on other modes of transportation.

Considered to be a bane for many residents who drive on routes of Golf Course, Sikanderpur, MG road and Cybercity, the diesel-run autos and private city buses continue to retain its popularity.

While these transportation mediums still charge a reasonable sum from their customers, the ticket prices in rapid metro range from a minimum sum of Rs 20 to a maximum of Rs 35.

Not only are the common citizens but even the office goers have lessened their daily travels.

Besides providing services for commuting, the other forms of revenue for rapid metro is through advertising on its trains and on certain occasions providing space for hosting functions in its coaches.

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