Reliance Infrastructure today announced the cancellation of Mumbai`s Metro Line 2 project citing non-fulfilment of certain obligations by Maharashtra government.
“Mumbai Metro Transport Pvt Ltd (MMTPL) wherein Reliance Infrastructure holds 48 per cent of the equity and government of Maharashtra have executed a termination agreement to terminate the concession agreement for the Mumbai Metro Line 2 Project (Charkop-Bandra-Mankhurd) corridor,” the company said issuing a statement.
The project was awarded by Maharashtra government to Reliance Infrastructure-led consortium in August 2009 through an international competitive bidding. The estimated cost of the project was about Rs 12,000 crore.
“Due to non-fulfilment of various critical obligations, by Govt. of Maharashtra/Mumbai Metropolitan Region Development Authority (MMRDA), the project could not take off. Even after four years, despite of the best efforts by Maharashtra government, various project impediments could not be resolved,” Reliance Infrastructure said.
Both parties (MMTPL and Govt. of Maharashtra) agreed to terminate the concession agreement at no cost or claim to either party, with government of Maharashtra to return the bank guarantee (of Rs 160 crore) to MMPTL.
“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,” the company said.