Delhi Metro took over operations of Airport line from July 1
Delhi Airport Metro Express Private Limited (DAMEPL), a SPV of Reliance Infrastructure Ltd. (RInra) has left operations of Delhi Airport rail line and is asking for a Termination Payment equal to 130% of the adjusted equity and 100% of the debt due for the project.
Accordng to Reliance, DAMEPL had terminated the Concession Agreement with the Delhi Metro Railway Corporation (DMRC) for the Delhi airport metro line nearly 9 months back but DMRC failed to make alternate arrangements for taking over the operations of the metro line, even after the termination of the Concession Agreement in October 2012.
Relaince Infra claimed that "DMRC had persistently failed to cure the substantial defects in the civil structure designed and built by DMRC, within the period prescribed under the Concession Agreement."
The matter has been referred to arbitration, in accordance with the dispute resolution mechanism specified in the Agreement.
Reliance Infra said it has been legally advised to claim for the Termination Payment to recover its entire investment in DAMEPL.
Source: Reliance InfraCountry news
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