Airport line: Delhi Metro rejects R-Infra's pull-out offer

With failure of negotiations between the two parties, they have now opted for arbitration to settle the vexatious issue once and for all. Delhi Metro today said it has rejected an offer by Reliance Infrastructure to quit the showcase Airport Metro Express project citing financial non-viability. Delhi Metro Managing Director Mangu Singh admitted that Reliance Infrastructure-led Delhi Airport Metro Express Private Limited had sent a notice for terminating the Concession Agreement signed between the two, thereby exiting the corridor. “Termination of the concession agreement has been disputed and the issue has been referred for resolution through arbitration proceedings.” Singh also admitted that issues were raised by R-Infra on the financial infeasibility of the project, and that their demand for restructuring the agreement had been rejected by Delhi Metro. It is learnt that the DAMEPL raised several issues regarding the financial non-viability of the country’s first Public-Private Partnership Metro project with the Delhi Metro and even sought for some restructuring of the model under which the corridor was being run.