Reliance Infra can’t quit project, says Delhi Metro

27 Oct 2012

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Four months after it was shut for repair following detection of cracks on the civil structure in the Delhi Airport Metro Express, Delhi Metro today said it has rejected an offer by Reliance Infrastructure to quit the project on the grounds that it is not viable, and asserted that the corridor would soon be thrown open to public after due repairs are completed.

The showcase airport express was built under the Delhi Metro Rail Corporation (DMRC), with Anil Ambani's Reliance Infrastructure Ltd as the concessionaire. The issue is now set to go for arbitration.

Delhi Metro managing director Mangu Singh told newspersons in New Delhi that the Reliance Infrastructure-led Delhi Airport Metro Express (DAME) had sent a notice for terminating the concession agreement signed between the two, thereby exiting the corridor, but ''we have rejected it".

"Repairs are almost complete. The line will undergo a safety inspection and then will be opened," he said.

Earlier the two sides had decided to go for arbitration on the issue. Reliance Infra had earlier requested the project be restructured. ''Issues raised by (DAME) regarding financial non-viability of the project, besides their request of restructuring, have been rejected by DMRC. On DAME's request, the dispute is now being referred to arbitration,'' Mangu Singh said.

DAME has been struggling to run the line ever since the operations were launched in February 2011. Operations were suspended on 8 July after defects were found in the civil structure.

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