Not willing to budge under the pressure from the Ministry of Urban Development (MoUD), the Delhi Government is unwilling to pay the termination fee of the Airport Express line to the Reliance Concessionaire until the matter is settled in ‘arbitration.’ Sources with the Delhi Government said that Chief Minister Arvind Kejriwal is expected to shoot a letter to the Ministry soon referring the matter stating that it be settled during the arbitration proceedings.
Top sources said the settlement of the termination fee of the Airport Express line was deferred by the Sheila Dikshit Government till the Assembly elections. Once the elections were over, the Union Ministry has once again sought the new Government’s comments over the settlement of the fee of Rs 1,820 crore to be paid to the Reliance concessionaire, the operator of the corridor earlier. Apart from the termination fee, the concessionaire has claimed Rs 1,200 crore, which will be settled under arbitration proceedings between Delhi Metro and the concessionaire. The Government will be of the view that it should reiterate the stand taken by the last Government of settling the matter in arbitration. Interestingly, the MoUD pressed for taking up the matter of payment of the termination fee to the Government of India without taking views of the Government of Capital of Delhi.
Sources said that since the private concessionaire of the line terminated the contract agreement with Delhi Metro, Delhi Metro Rail Corporation (DMRC) will have a stronger case over the concessionaire during the arbitration process. The DMRC has forfeited the performance security of the DAMEPl. Under these circumstances, there is no obligation upon the DMRC to terminate the Agreement or to make termination payment. This on part of the DMRC, at this stage would dilute the stand of DMRC. Rather the DMRC should vigorously defend its stand before the arbitrators appointed by the parties should contend before the Arbitrators that DAMEPl was at fault.