Govt plans to pay Rs 1,680 cr parting gift to Rel Infra!
24 July 2013 11:51 PM GMT
Reliance Infra, the concessionaire for Delhi Airport Expressline Private Limited (DAMEPL), will be paid Rs 1,680 crore for failing to run the state-of-the-art operations! Despite having caused huge loss to the exchequer and inconvenience to the public, the government is planning to pay Reliance’s associate company the huge sum as parting gift.
A note to this effect has been sent by the Delhi Metro Rail Corporation (DMRC), which has taken over the Expressline operation since 1 July, to the ministry of urban development ministry (UDM), which in turn is preparing a detail note for Empowered Group of Ministers (EGOM) for ‘resolving financial issues of Reliance’s associate company’s dues.’
Reliance Infra has repeatedly claimed that DMRC was now liable to pay a termination amount equal to 130 per cent of the adjusted equity and 100 per cent of the debt due to the project.
According to UDM sources, following the note received from the DMRC, the ministry was in a dilemma on the line to be taken on the huge debt left behind by Reliance Infra and ways and means to fund future operations.
‘The union urban development ministry has started to prepare a note for EGOM. The EGOM has discretionary power to take a decision on the matter,’ said ministry official.
‘The situation has arisen because of the clauses of the concessionaire agreement. Reliance is blaming DMRC for the losses incurred by DAMEPL and wants to be compensated. Reliance had put forward a demand of Rs 2100 crore as compensation for losses.
The DMRC after raising perfunctory objections has recommended release of Rs 1680 crore,’ added the ministry official.
DMRC has also suggested that of this amount of Rs 1680 crore, Rs 840 crore should paid by union government and Rs 840 crore should paid by Delhi government, who hold equal stakes in Delhi Metro.
A note to this effect has been sent by the Delhi Metro Rail Corporation (DMRC), which has taken over the Expressline operation since 1 July, to the ministry of urban development ministry (UDM), which in turn is preparing a detail note for Empowered Group of Ministers (EGOM) for ‘resolving financial issues of Reliance’s associate company’s dues.’
Reliance Infra has repeatedly claimed that DMRC was now liable to pay a termination amount equal to 130 per cent of the adjusted equity and 100 per cent of the debt due to the project.
According to UDM sources, following the note received from the DMRC, the ministry was in a dilemma on the line to be taken on the huge debt left behind by Reliance Infra and ways and means to fund future operations.
‘The union urban development ministry has started to prepare a note for EGOM. The EGOM has discretionary power to take a decision on the matter,’ said ministry official.
‘The situation has arisen because of the clauses of the concessionaire agreement. Reliance is blaming DMRC for the losses incurred by DAMEPL and wants to be compensated. Reliance had put forward a demand of Rs 2100 crore as compensation for losses.
The DMRC after raising perfunctory objections has recommended release of Rs 1680 crore,’ added the ministry official.
DMRC has also suggested that of this amount of Rs 1680 crore, Rs 840 crore should paid by union government and Rs 840 crore should paid by Delhi government, who hold equal stakes in Delhi Metro.
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