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Reliance Infrastructure promoted Delhi Airport Metro Express Private Ltd (DAMEPL) and Delhi Metro Rail Corporation (DMRC) are now headed to arbitration for the 23-km airport express line project.
But the DAMEPL will run the airport line services pending resolution of the disputes through arbitration. Reliance Infra stated in a release that it will soon start operating services, as the repair work being done by DMRC was nearing completion.
Reliance, however, did not share what sweeteners it had sought from DMRC through the restructuring process.
It also did not comment on the DMRC statement about the contract getting terminated, which indicates that the company wants to exit the project unless it is restructured.
“Issues raised by DAMEPL regarding financial non-viability of the project and also their request of re-structuring has been rejected by DMRC. On request of DAMEPL, the dispute is now being referred to Arbitration,” the DMRC Managing Director Mangu Singh, stated in a release.
Similarly, the issue of termination of the Concession Agreement has been disputed and the same has also been referred for resolution through arbitration proceedings, Singh added.
The special purpose vehicle DAMEPL was posting operating losses.
“Delhi Metro does not reflect on our balance sheet as it is no longer majority held,” Lalit Jalan, CEO, Reliance Infrastructure, stated in August.
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