Reliance Infrastructure (RInfra) on Tuesday reiterated to its shareholders that it will receive entire investments of R2,800 crore in the Delhi Airport Metro project, which it exited over a month ago.
Addressing shareholders at its 84th Annual General Meeting, company’s chairman Anil Ambani said, “The Delhi Airport Metro project has been handed over to DMRC and the process of arbitration has begun. According to the legal advise received by the company, we are confident of receiving our entire investments in the project”.
RInfra terminated its contract for the project with effect from July 1, 2013, citing DMRC’s failure to cure substantial defects in civil structure designed and built by them and on account of ‘material breach’ and ‘event of default” The DAMEPL (Delhi Airport Metro Express), a subsidiary of RInfra, has claimed termination payment equal to 130% of adjusted equity and 100% of debt due for the project.
Meanwhile, Ambani also said that Maharashtra Electricity Regulatory Commission has allowed RInfra to recover R925 crore of arrears every year, aggregating R5,550 crore over six years.
On the infrastructure side, he said that all 11 road projects will be revenue operational within the current financial year, and the Mumbai Metro will also be operational by end of 2013.
