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Reliance Infra, state govt terminate contract

The MMRDA has been considering changing the nature of the project from an elevated Metro line to an underground one.

| Mumbai | Published: November 14, 2014 3:36 am

Putting an end to years of uncertainty over the implementation of the stalled Charkop-Bandra-Mankhurd Metro Rail on a public private partnership model, the BJP-led state government and Reliance Infrastructure signed an agreement to scrap the contract with no obligations on either side.

With the project remaining a non-starter, the previous Congress-NCP government had been discussing the termination informally with the private company before elections, but the formal agreement to end the contract was signed  earlier this week, on Tuesday.

The MMRDA has been considering changing the nature of the project from an elevated Metro line to an underground one, and extending it to Dahisar on cash-contract basis.

As per the agreement, the state will return the bank guarantee of Rs 160 crore to Reliance Infrastructure, the company said. Beyond that, there would be no claims on either side. “With the above said termination of the Concession Agreement, all commitments of Reliance Infrastructure towards the project including commitments towards funding the project have been annulled with immediate effect,” a Reliance spokesperson said.

The state govt signed a concession agreement with Mumbai Metro Transport Pvt Ltd (MMTPL), a special purpose vehicle, on January 21, 2010. Reliance Infrastructure had a 48 per cent stake, while Canada’s SNC Lavalin and Reliance Communications held 26 per cent each.

Dilip Kawathkar, MMRDA spokesperson said, “The concession agreement has been terminated mutually. A formal communication from the MMTPL for the return of bank guarantee is awaited and the procedure to return the bank.”
mumbai.newsline@expressindia.com

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