The arbitration of Airport Express line is likely to cost Delhi Metro Rail Corporation (DMRC) Rs1.25 crore. The expenditure of the Airport Express line may also go up to Rs23.17 crore in the year 2013-14 as against the projected expenditure of Rs16.56 crore.
The Delhi Metro disclosed these estimates in its budget for the 2013-14 financial year. The budgeted expenditure of 2012-13 and expected expenditure for the year 2013-14 was discussed at the Board of Directors of Delhi Metro on March 26. The estimated expenditure during 2013-14 is Rs10,355 crore. During 2012-13, 81 per cent of the budget was spent on projects and deposit works.
The concessionaire Delhi Airport Metro Express Private limited (DAMEPl) and Delhi Metro have decided to go to arbitration for the 23-km airport express line project. The DAMEPl had already expressed its inability in operating the high speed corridor citing ‘financial non-viability’ and issued notice for termination of concessionaire agreement which was disputed by Delhi Metro.
According to sources, DAMEPl, which is responsible for running the high speed airport metro express line, is incurring losses of over Rs50 crore a month. They are supposed to pay Rs64 crore as rent to Delhi Metro every month but their total revenue collection is around Rs52 crore a month.
According to budget estimates, the revenue expected to be generated in 2013-14 from the operation is estimated at Rs1,730.85 crore.