Reliance Infrastructure (RInfra) that built Airport Express line has won its arbitration against Delhi Metro Rail Corporation (DMRC). RInfra on Thursday claimed that Arbitration Tribunal has awarded its arm DAMEPl a compensation of Rs 2,950 crore against DMRC on Airport Express line metro.
RInfra had to leave the Airport Express line metro after it claimed to have suffered losses in the operation as the fare structure was on the lower side. The company officials had then said that working with the Union Urban Development Ministry was not possible owing to the circumstances.
RInfra had then said that working with DMRC was difficult and there was structural fault in the airport express line metro.
RInfra on Thursday issued a statement, “DAMEPl, a subsidiary of RInfra, today announced that it has been awarded compensation of Rs 2,950 crore by a three member arbitral tribunal in a unanimous decision. The tribunal was constituted from a panel nominated by Delhi Metro Rail Corporation (DMRC)”.
The statement further said that the amount accrued in lieu of the compensation award will be used to pay lenders’ debt of Rs 1,900 crore. The award was granted to RInfra on the basis of termination provisions of the concession agreement where the arbitration tribunal has held termination by Delhi Airport Metro Express Private limited (DAMEPl) as valid.
“The compensation covers damage as a result of breach by DMRC of its obligations under the concession agreement and material adverse effect on the ability of DAMEPl to perform its obligations under the concession pact.”
Welcoming the award, a RInfra spokesperson said, “Reliance Infrastructure participated in PPP model in the metro sector to lead the metro movement in the country through PPP, but unfortunately had to terminate the agreement. We welcome the award and hope it will encourage private sector to participate in the nation building process.”
It may be noted that the three members arbitration tribunal, formed out of a DMRC nominated panel as per the concessionaire agreement signed on September 2013 gave its award in May 2017. The tribunal heard the case for about three and half years before coming to the conclusion that RInfra was the aggrieved party. The company stated further said, “After the tribunal heard the submission made by both the parties and after detailed proceedings in 68 hearings, it has issued its final order”.