October 11, 2008

REL CAF bags DMRC airport link

Reliance Energy Limited announced that its consortium with CAF of Spain has been awarded the Airport Metro Express Line Project on BOOT basis for a concession period of 30 years by Delhi Metro Rail Corporation Ltd.

The proposed 22.7 km of high speed metro rail line shall connect New Delhi Railway Station and New Delhi International Airport through Cannaught Place. The estimated project cost is about INR 2,500 crore; the project is scheduled to be operational in July 2010.

DMRC had invited expressions of interest from consortia to design, commission and operate the airport to city centre rail link for a 30 year period. The consortium will have to install all systems including rolling stock, overhead electrification, track, signaling and telecommunication, ventilation and air conditioning, automatic fare collection, baggage check in and handling, depot and other facilities. DMRC would do the civil work for the project.

For running the operations, the consortium would pay INR 51 crore in the first year. In the subsequent years, it would pay an additional 5% per annum on a compounded basis for the remaining period of the contract. It would also share 1-5% of gross revenue for the first 15 years of operations and share 5% revenues thereafter.

Five consortia consisting of global rail rolling stock firms and infrastructure development companies had expressed an interest to design and operate the rail link. It included Canadian rolling stock major Bombardier with IL&FS, German firm Siemens Transportation with Gammon India, Larsen & Toubro and American player GE Transportation, Reliance Energy with Spanish rolling stock company CAF.

The Airport Line is envisaged to be developed in line with state of technology and shall be comparable to the world's best airport links.