[metaslider id=8298]Reliance Infrastructure Ltd has announced the termination of the concession agreement with the Maharashtra government for the Mumbai Metro Line 2 (Charkop-Bandra-Mankhurd) project “due to non-fulfillment of various obligations” by the government.The project was awarded to a Reliance Infra-led consortium on August 3, 2009, and the concession agreement was executed on January 21, 2010, between the Government of Maharashtra and Mumbai Metro Transport Pvt. Ltd which in RInfra holds 48 per cent of the equity. The project was estimated to cost Rs. 12,000 crore.
The two parties to the agreement had signed the termination agreement at “no cost and no claims” to either party and the state government was to return the bank guarantee of Rs. 60 crore.“Due to non-fulfillment of various critical obligations, by Government of Maharashtra and Mumbai Metropolitan Region Development Authority, the project could not take off. Even after four years, despite the best efforts by the government, various project impediments could not be resolved,” RInfra noted in a company release.
The company further said, “With the termination of the concession agreement, all commitments and liabilities of RInfra towards the project, including the commitments towards funding the project, have been annulled with immediate effect.”
RInfra is developing projects through various special purpose vehicles in several high-growth sectors within the infrastructure space i.e. roads, metro rail and cement. It is also the leading utility company with presence in power businesses i.e. generation, transmission, distribution and power trading.
Through SPVs, RInfra has executed infrastructure projects such as the first metro rail project in Mumbai on BOOT basis; 11 road projects spanning 1,000 km on BOT basis, and two cement plants of 5-million tonne capacity each in Maharashtra and Madhya Pradesh, of which the plant in MP has started commercial production. RInfra, along with its wholly-owned subsidiary company, generates over 940 MW of power through five power stations and distributes power to over 64 lakh consumers in Mumbai and Delhi.