Airport Express problems may be solved by end of month
The problem regarding the Delhi Airport Express Metro Line is going to be solved by the end of this month. The Election Commission has given special permission to the government to conduct the meeting of the Empowered Group of Ministers that will going take the decision regarding the problem related to Delhi Airport Express Metro Line.
This problem may be solved by the EGoM and the gathering may also take decision on how to get the debt of R2,000 crore to the consortium of banks led by Axis Bank repaid. Reliance Infra-led Delhi Airport Metro Express (DAMEPL) had pulled out of the project in last June. The Comptroller and Auditor General (CAG) had earlier mentioned that due to the serious mistakes in the report undue financial benefits went to Reliance Infra. Reliance infra had declared a lapse payment of about R2,800 crore.
This project connects the city to the airport and was constructed under the public-private partnership (PPP) model by the DAMEPL, which is the joint venture between Reliance Infra and Construccionesy Auxiliar de Ferrocarriles (CAF) of Spain.
The Anil Dhirubhai Ambani Group’s company is obliged to pay the amount equivalent to 130% of equity and the entire remaining debt. The panel which is going to solve the problem between DMRC and DAMEPL has not started its working. DAMEPL was on the monthly loss of Rs 4 crore on its operations.
A government official says that if the Express Line goes to DMRC then its promoters will have to take responsibility of paying the debt. The challenge in front of the urban development ministry is how to make the Airport Line financially viable.
The 23 km line was constructed at the price of Rs 5,700 crore, in which Rs 28,00 crore was invested by the Reliance Infra-promoted DAMEPL.
The functioning of the line was stopped from July 7, 2012, to January 22, 2013 because of the technical problems and after the reopening of the line the speed was reduced and the price was increased because of which the passengers got reduced.
Source: The Financial Express
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