1. Reliance Infra cancels Rs 12,000 cr Mumbai Metro Line 2 project

Reliance Infra cancels Rs 12,000 cr Mumbai Metro Line 2 project

The project was awarded by Maharashtra govt to Reliance Infrastructure-led consortium in 2009 through an international competitive bidding.

By: | Mumbai | Updated: November 13, 2014 3:37 PM
The estimated cost of the Mumbai Metro Line 2 project was about Rs 12,000 crore. (PTI)

The estimated cost of the Mumbai Metro Line 2 project was about Rs 12,000 crore. (PTI)

Reliance Infrastructure today announced the cancellation of Rs 12,000 crore Mumbai’s Metro Line 2 project citing non-fulfilment of certain obligations by Maharashtra government.

“Mumbai Metro Transport Pvt Ltd (MMTPL) wherein Reliance Infrastructure holds 48 per cent of the equity and government of Maharashtra have executed a termination agreement to terminate the concession agreement for the Mumbai Metro Line 2 Project (Charkop -Bandra-Mankhurd corridor),” the company said in statement.

The project was awarded by Maharashtra government to Reliance Infrastructure-led consortium in August 2009 through an international competitive bidding.

The estimated cost of the project was about Rs 12,000 crore.

“Due to non-fulfilment of various critical obligations, by GOM/ Mumbai Metropolitan Region Development Authority (MMRDA), the project could not take off. Even after four years, despite of the best efforts by Maharashtra government, various project impediments could not be resolved,” Reliance Infrastructure said.

Both parties agreed to terminate the concession agreement at no cost or claim to either party, with government of Maharashtra to return the bank guarantee (of Rs 160 crore) to Mumbai Metro Transport Pvt Ltd.

With the termination of the agreement, all commitments or liabilities of Reliance Infrastructure towards the project including the commitments towards funding the project have been annulled with immediate effect.

  1. T
    Truth hurts
    Nov 14, 2014 at 1:23 am
    Will return for double.
    Reply
    1. P
      pk
      Nov 14, 2014 at 8:10 am
      There is some pattern in Reliance handling of infra projects. How can such big co. with ask resources and intelligence would be so wrong in risk essment? This was compeive bidding and not a forced ignment. They should be made answerable for the delays and cost escalation that they will cause due to the abdication. See Reliance Delhi metro case- www.livemint/Companies/7e98U6Owne6BpJVgN4PfJK/Reliance-Infra-resumes-paying-Delhi-Metro-dues
      Reply

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