Fate of India's 1st pvt metro likely to be decided today

Gurugram: The Punjab and Haryana High Court on Tuesday concluded its hearing on whether Gurugram private metro is closed or handed over to the Haryana government for operations. The case that was heard by a bench of AK Tyagi and RK Jain has reserved its order and is likely to pronounce the judgment on Wednesday. According to sources the Delhi Metro Rail Corporation (DMRC) has expressed interest in running.

Sources indicate that Infrastructure leasing and financial services (ILFS) that presently operates the private metro through its two subsidiaries of Rapid Metro Rail Gurugram Limited (RMRGL) north and south divisions softened its stance after DMRC proposal. Earlier citing heavy losses the private company had that it was unable to run operations as it could not sustain heavy losses each day it was incurring. "The management of Rapid Metro which was adamant on discontinuing its services from midnight changed its stance after lunch and accepted to operate it for some more time," said Harinder Dhingra, a social activist who was present during the court hearing.

The mounting losses for Gurugram's private metro have resulted in the pressure of the Haryana government to take over the Rapid Metro. However, it is not as easy as it seems with a huge debt of over Rs 3,000 crore already there is pressure on the government to take over 80 percent of the loan. If and when the Haryana government takes over the Rapid Metro it would mean they have to pay Rs 2,560 crore of loans.

The financial troubles of IL&FS, the company that constructed the Rapid Metro, in mid-2018 and the Union government moving an application before the National Company Law Tribunal, Mumbai, seeking suspension of its board of directors on the grounds of massive mismanagement of public funds proved to be the last nail in the coffin of the RMGL.

The RMRGL was among the 38 domestic group entities of IL&FS classified as "Red Entity" by the Union government, saying that it could not meet its payment obligations towards even senior secured financial creditors.

For a city with an abysmal record on public transport, the news of Rapid Metro network struggling financially has come as a rude shock for the residents. Around 60,000 people commute daily in Rapid Metro, India's first fully privately financed metro system that also acts as a feeder to the Delhi Metro Rail Corporation (DMRC) network, connecting at the Sikanderpur metro station on the Yellow Line.