How long can DMRC carry Reliance Infra’s burden?
3 July 2013 11:57 PM GMT
Operating the Airport Express Line is going to prove an onerous task for the Delhi Metro Rail Corporation (DMRC), which has been drafted in after concessionaire Reliance Infra decided to exit from the project last Monday. DMRC faces a host of challenges including bringing down the monthly losses of Rs four crore, fighting a long drawn arbitration procedure with the concessionaire, paying off a debt of Rs 3,000 incurred by the concessionaire in the operation of the line.
According to sources, the Union Urban Development Ministry has decided to put all issue before Empowered Group of Ministers (EGOM), which will decide the future of the Delhi Airport Metro Express Line. Union Urban Minister Kamal Nath has already decided to take these issues to the EGOM. Since it was EGOM which had approved this line on PPP model, it has discretionary power to bring in changes in the operation model.
‘There is no easy solution in sight on the ongoing dispute between Reliance Infra and Delhi Metro Rail Corporation to operate and manage India’s first high speed corridor, which connects Central Delhi with the Indira Gandhi International Airport (IGI) Terminal-3. The DMRC has taken over keeping the commuters’ interest in mind and mounting pressure from the centre,’ said a DMRC official.
According to senior Union Urban Development Ministry officials, Axis Bank, the lead bank among others, that gave loan for the project, has not given a positive response on whether they will continue to lend money to DMRC for running the Airport Express Line project.
The Centre too has so far refused to clear the debts. According to senior Union Urban Development Ministry officials, DMRC has proposed that the debt should be repaid jointly by Centre and Delhi government but the Ministry is of the opinion that the Centre should not be made to bear this burden since the contract is between DMRC and Reliance Infra.
According to sources, the Union Urban Development Ministry has decided to put all issue before Empowered Group of Ministers (EGOM), which will decide the future of the Delhi Airport Metro Express Line. Union Urban Minister Kamal Nath has already decided to take these issues to the EGOM. Since it was EGOM which had approved this line on PPP model, it has discretionary power to bring in changes in the operation model.
‘There is no easy solution in sight on the ongoing dispute between Reliance Infra and Delhi Metro Rail Corporation to operate and manage India’s first high speed corridor, which connects Central Delhi with the Indira Gandhi International Airport (IGI) Terminal-3. The DMRC has taken over keeping the commuters’ interest in mind and mounting pressure from the centre,’ said a DMRC official.
According to senior Union Urban Development Ministry officials, Axis Bank, the lead bank among others, that gave loan for the project, has not given a positive response on whether they will continue to lend money to DMRC for running the Airport Express Line project.
The Centre too has so far refused to clear the debts. According to senior Union Urban Development Ministry officials, DMRC has proposed that the debt should be repaid jointly by Centre and Delhi government but the Ministry is of the opinion that the Centre should not be made to bear this burden since the contract is between DMRC and Reliance Infra.
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