A consortium led by Anil Ambani controlled Reliance Infrastructure (RInfra) and Maharashtra Government have mutually terminated the concession agreement for Mumbai Metro Line 2 connecting Charkop to Mankhud via Bandra.
RInfra said the termination was due to non-fulfilment of various obligations by the Maharashtra Government . The project, estimated at Rs.12,000 crore, was awarded to the Rinfra led consortium through an international competitive bidding in 2009. The termination comes a day after RInfra reported Rs.57 crore loss on account of Mumbai Metro One.
The project was to be implemented by Mumbai Metro Transport Private Ltd. (MMTPL) wherein RInfra holds 48 per cent of the equity. The concession agreement was executed on January 21, 2010, between the Maharashtra Government and the consortium.
“Due to non-fulfilment of various critical obligations by Government of Maharashtra/Mumbai Metropolitan Region Development Authority (MMRDA), the project could not take off. Even after four years, despite of the best efforts by the Government of Maharashtra, various project impediments could not be resolved,” RInfra said in a statement.
“The parties agreed to terminate the concession agreement at no cost or claim to either party with Government of Maharashtra agreeing to return the bank guarantee of Rs.160 crore to MMTPL. Accordingly, the agreement to this effect has been executed between MMTPL and Government of Maharashtra,” the statement added.
With the above said termination of the concession agreement, all commitments/liabilities of RInfra towards the project including the commitments towards funding the project have been annulled with immediate effect, the company said.
