After the Mumbai metro project, Anil Ambani-promoted Reliance Energy Ltd has bagged the New Delhi-Indira Gandhi International Airport link of the Delhi metro.
REL-Spain CAF consortium wins Rs 2,500 crore, 19.2 km deal
NEW DELHI: After the Mumbai metro project, Anil Ambani-promoted Reliance Energy Ltd (REL) has bagged the New Delhi-Indira Gandhi International Airport link of the Delhi metro. Delhi Metro Rail Corporation (DMRC) has issued a letter of intent (LOI) to a consortium of REL and CAF of Spain.
The project, to be put up at a cost of Rs 4,000 crore, would cover 19.2 km. While the civil works for the project, involving construction of viaduct, underground tunnelling works and construction of stations, would be done by DMRC itself, the consortium would be involved in putting up equipment and the rolling stock at a cost of about Rs 2,500 crore.
Sources said, according to the LOI, REL would set up a special purpose vehicle with 5% equity participation from Spain’s CAF. Within 60 days of the issue of LOI, the SPV would sign a concession agreement with DMRC.
The SPV would design, maintenance and operate the metro link that would be operational by July 2010. The SPV would pay a concession fee during the first year of operation to DMRC.
REL would have the project for a total of 30 years including a period of about two years for development of the project. Its opening would coincide with the Common Wealth Games.
Besides the concession fee, sources said SPV would share revenue with DMRC for running the system. The revenue sharing would be at the rate of 1% of revenue for the first five years, 2% for the next five years, 3% for the following five years and 5% for the subsequent years.
DMRC had invited bids from private companies for laying of the 23-km stretch with five stations on a build-operate-transfer basis. Five bidders were shortlisted for the project but only two bids were received. Besides REL, Larsen & Toubro and GE Transport of the US were in the fray for the project.
DMRC had earlier notified the fares for the airport link from point to point would be Rs 180 though the SPV was free to charge a lower fare. The fare would be linked to the wholesale price index.
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