1. Airport Metro Express case: Reliance Infrastructure wins Rs 2,950 cr compensation from Delhi Metro

Airport Metro Express case: Reliance Infrastructure wins Rs 2,950 cr compensation from Delhi Metro

Delays in approvals and land acquisition as also other problems have hurt PPP projects in the last few years.

By: | Updated: May 12, 2017 7:39 AM
DAMEPL was constructed in the public private partnership (PPP) mode by RInfra with the civil work for the 22.7 kilometre long metro line contracted to DMRC. (Reuters)

Delays in approvals and land acquisition as also other problems have hurt PPP projects in the last few years. For instance, Larsen&Toubro had sought more time from the Telangana government to extend the construction deadline of Hyderabad Metro and compensate it for the delays. The company has repeatedly stated that the finalisation of alignment and the lack of continuous right of way in prime areas have hampered progress. RInfra too has had a run in with the Maharashtra government, for the Mumbai Metro, over cost escalations and an increase in tariffs. HCC too has faced delays for some and cost escalations for road projects due to inability of NHAI to provide land in time.

DAMEPL was constructed in the public private partnership (PPP) mode by RInfra with the civil work for the 22.7 kilometre long metro line contracted to DMRC. The project became operational in February 2011 after missing a few deadlines. However, from July 2012, services were suspended due to technical problems but resumed in January 2013 at a reduced speed of 50 km/hour. While R Infra claims it sent DMRC a termination notice in October, 2012, after bringing to notice the several defects in the civil works and attempts to get them rectified, DMRC has disputed these claims.

In late June, 2013, RInfra finally intimated DMRC it would no longer be able to operate the line beyond June 30, 2013. DMRC took over the operations of Airport Express line from July 1, 2013, and reinstated the 80 km/hour speeds on the line in mid-2014. The three-member arbitration tribunal, formed out of a DMRC-nominated panel, decided on the compensation after 68 hearings over three and half years. So far, of the Rs 15,000 crore that is stuck in various stages of arbitration, RInfra has won awards of around Rs 5,000 crore. Another Rs 10,000 crore is blocked in four road projects and the Mumbai Metro.

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