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Fate of Gurugram Rapid Metro to be decided on Sep 17

Friday - September 13, 2019 7:26 pm , Category : BUSINESS
Gurugram, Sep 13 (IANS) The fate of the privately-funded Rapid Metro in Gurugram will be decided on September 17 after its current concessionaire Rapid Metrorail Gurugram Ltd (RMGL) expressed inability to run it any further.
The earlier deadline of the in the Punjab and Haryana High Court was September 9 and the court believes that both stakeholders - Haryana Shehari Vikas Pradhikaran (HSVP), previously known as HUDA, and RMGL should have given some more time so that they could conclude a decisive negotiation.
Chetan Mittal, senior counsel of RMGL, has said there would be time-bound handover of the project to HSVP with commitment to pay at least 80 per cent of debt due as termination of payment to RMGL by HSVP and RMGL will work as agent rather than concessionaire of the project from September 17.
Mittal also said that costs and benefits would be on HSVP's account from the given date.
The counsel pointed out that the two contracts dated January 3, 2009 and January 3, 2013, between HSVP and RMGL have been terminated on August 26, 2019.
RMGL had filed a case in the high court earlier this year and the court had given notice of 90 days to both parties with clear instructions to run the commercial operation till September 9, 2019.
During the hearing on September 9, 2019, the high court extended the time by one week.
After commercial operation of first phase in November 2013 and second phase in March 2017, RMGL had expected to get ridership of high-end office-goers and residents of new Gurugram living in DLF city.
According to an official, there are over two lakh office-goers in DLF Cyber City everyday and the company had an expectation that at least 40 to 50 per cent of them would use the Rapid Metro.
However, it was not the case and footfall did not exceed more than 15,000 per day in the first phase. The footfall did not increase either in the second phase as well after March 2017 when the length of the network reached 11.7 kms. Despite all efforts, the footfall does not cross 50,000 per day, said a spokesperson of RMGL.
The second phase was completed in December 2016 at a cost of Rs 2,143 crore and it was thrown open for public in March 2017. The first phase of the project cost Rs 1,450 crore. Company sources that that it has been bearing heavy losses and hence it expressed inability to run it any further.

--IANS str/kr

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