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DMRC and Reliance Infra planning to go for arbitration
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Sunday, 28 Oct 2012
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Business Standard reported that 4 months after it was shut for repair, following detection of cracks on the civil structure, the trouble for the showcase Delhi Airport Metro Express looks to be increasing further, with the 2 sides Delhi Metro Rail Corporation and the concessionaire, Reliance Infrastructure Ltd planning to go for arbitration.

Reliance Infra, a subsidiary of Reliance Anil Dhirubhai Ambani Group had earlier requested the project be restructured.

Mr Mangu Singh chairman of DMRC said that “Issues raised by Delhi Airport Metro Express 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.”

Mr Lalit Jalan CEO of DMRC said that according to initial estimates, 40,000 people were expected to use the 23 kilometer line on a daily basis, but the daily ridership could never cross the 21,000 mark. The average daily ridership stood at 17,000 when the line was closed for repair in July. Asked what kind of financial restructuring Reliance Infra was looking for.

On troubled tracks

Jan 2008 DMRC awards 30 year build operate transfer contract to R Infra CAF consortium for the Delhi Airport Metro Express line

Sep 2010, the line fails to get safety clearances from the commissioner of Metro Rail Safety over technical glitches

Feb 2011 DAME commences operation months after missing the original deadline of August 2010. Ridership remains low

Jul 2012 Shut for repair after cracks appear in civil structure

Oct 2012 DMRC says it has decided to go for arbitration on the request of the concessionaire

Mr Singh said that the issue of termination of the concession agreement had been disputed and has been referred for resolution through arbitration proceedings. However, didn’t clarify on termination of the agreement. DAME had served a termination notice to DMRC.

Source - Business Standard

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