Final decision soon on debt, operations of Airport Metro line
An empowered group of ministers (EGoM) headed by Defence minister AK Anthony will take a final decision on Wednesday, regarding issues related to the operation of the Delhi Airport Express Metro Line and its debt.
A senior government official said, “The EGoM will decide whether to go for a new concessionaire or not and who’ll take the burden of the debt.”
Last year in June, The Reliance Infra-led Delhi Airport Metro Express (DAMEPL), which pulled out of the project, said it is not responsible for the debt. From DMRC a termination payment of about R2,800 crore has been claimed by DAMEPL.
An association of 11 banks, led by Axis Bank, has an exposure of almost R2, 000 crore to the project. If Delhi Metro Rail Corporation (DMRC) is given the line, then it will be responsible for serving the debt.
DMRC is obliged to pay a termination payment equivalent to 130% of equity and the entire remaining debt, as told by The Anil Dhirubhai Ambani Group Company. Though, the arbitration panel, which is thought to sort out the dispute between DMRC and DAMEPL, has not yet started its hearing. On its operations, DAMEPL was making monthly losses of R4 crore.
The official added, “If the Express Line goes to DMRC then its promoters — the state government and the central government — will have to take the burden of the debt. The challenge before the ministry is how to make the Airport Express line financially viable.”
Source: The Financial Express
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