Both Mumbai Metro Transport, a unit of R-Infra and Maharashtra government agreed to terminate concession agreement for Charkop-Bandra-Mankhurd Metro at no cost or claim to either party
Reliance Infrastructure on Thursday announced the cancellation of Mumbai's Metro Line 2 project citing non-fulfilment of certain obligations by the Maharashtra government.
In a statement, the company part of Reliance-Anil Dhirubhai Ambani (ADA) group, said, "Mumbai Metro Transport Pvt Ltd wherein Reliance Infrastructure holds 48% of the equity and government of Maharashtra have terminated the concession agreement for the Mumbai Metro Line 2 Project (Charkop -Bandra-Mankhurd corridor)".
In 2009, the state government awarded the project to Reliance Infrastructure-led consortium through international competitive bidding. The estimated cost of the project was about Rs12,000 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 the best efforts of the 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. The government of Maharashtra will return the bank guarantee (of Rs160 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.
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Some of them being removing of encroachments, rehabilitation of PAP's project affected people, special land acquisitions in the Metro 2 project path etc. etc. These have to be looked at, from the very commencement of the project. These cancellations cost in terms of TIME and escalations of costs. MMRDA should continue to look at other METRO routes and not stall the development of further routes. Also Reliance has now proven by doing a good job of Mumbai Metro 1, and we need more coaches, we need 6 coaches on each Metro train, then the existing 4 coaches that run on the Versova Ghatkopar route and vice versa. The rush is perpetual trough out the day with a slight relaxation in loads between 1pm - 4 pm. Also there is a need for more automated kiosks, and manned ticket slaes counters at Andheri Main metro station and Versova and Ghatkopar to reduce the serpentine human queues. The planning for coaches and ticket kiosks should be taken into account o have increased numbers with the bursting Mumbai population already in advance.