Govt to take EC nod for GOM decision on Airport Metro payment
After the announcement of polls on Wednesday, the urban development minister wants the Group of Ministers (GOM) to take decision whether Delhi Metro Rail Corporation (DMRC) should terminate the payment to the private firm that was walked out of Airport Metro project.
The minimum payment would be Rs 900 Crore in case the GOM takes a decision. The GOM was scheduled to meet on Wednesday.
This will be decided after EC announces the poll dates. The Ministry will take EC’s permission for the GOM meeting because of fear that project will become non performing. DAMEPL, a subsidiary of Reliance Infrastructure, failed to repay the loan installments to the bankers.
DMRC maintained that it is not bound to terminate the contract, the solicitor general opined that DAMEPL walking out of the project should be seen as de facto deemed termination. As per the concession agreement, the termination payment can only be made when the contract is terminated.
The contracting parties are DAMEPL and DMRC in Airport Metro. Sources said that the attorney general had also given an opinion that payment can be made to DAMEPL to avoid paying heavy interest.
As per the contract rules, in case the termination is due the payment will be 80% of the outstanding debt. It will be 130% in case DMRC loses the case. Finally, the problem is regarding the amount that should be considered as debt. While DAMEPL had quoted approximately Rs 1,250 crore as debt, in the escrow agreement signed between the company and DMRC, it increased to about Rs 2,000 crore. According to a source “The termination payment has to be made by DMRC as per the contract agreement. The only issue is when the payment can be made.”
Source: The Times of India
Airport Metro project, DAMEPL, Delhi Metro Rail Corporation (DMRC), Election commission, Group of Ministers, group of ministers (GoM), Reliance Infrastructure, solicitor general, urban development minister
