Working with authorities to resolve outstanding issues,says DGSCL after being served deal termination notice
Locked in a bitter standoff with the National Highways Authority of India (NHAI) and served a notice terminating the deal that allows it to operate the Gurgaon expressway,the Delhi Gurgaon Super Connectivity Limited (DGSCL) on Wednesday said it was working with authorities to resolve outstanding issues though the NHAI had been restrained by the Delhi High Court from taking action.
The matter will be heard in court on March 1.
A spokesperson for the DGSCL denied NHAI charges of wrongdoing and said approvals had been taken from relevant authorities before executing terms of the project.
The NHAI,in its notice,raised three key issues: refinancing done by DGSCL without prior NHAI approval; designed in 2004,the toll plaza did not keep future traffic volume in mind; and,non-finalisation of the Operations & Maintenance (O&M) plan for 2011-12.
The NHAI accused the concessionaire of fraud over refinancing of the project without its approval. In December,the NHAI issued a preliminary termination notice to DGSCL,prompting the latter to move court. Last week,the NHAI served a final notice.
In a statement on Thursday,the DGSCL said refinancing was done in September 2010 after the NHAI issued an NOC to the company in July 2009. The refinancing was completed after incorporating all comments of the NHAI in the financial documents,which were provided by NHAI between January and March 2010. According to the company,this proved that prior approval had been taken for refinancing.
On the second NHAI objection,the DGSCL said the toll plaza was designed in 2004 after taking all approvals from the NHAI and the independent consultant appointed by NHAI. In 2008-09,the independent consultant certified that the toll plaza had been constructed as per the concession agreement and was sufficient to meet future traffic requirements,the company said. It added that the consultant recently recommended toll plaza expansion drawings to the NHAI.
The DGSCL said the O&M plan for 2011-12 has already been approved by the independent consultant and even the O&M plan for 2012-13 has been provided by the company for review and approval.