Rapid Metro hurtling towards early demise – ( Private player building a metro , False numbers and IL&FS funding making of a racket and largely affected the lease rental value of DLF properties specially in Cyber City and project sanctioned under Hooda government now they want a exit after the blunder with money )

Posted on Aug 23 2019 - 6:15pm by admin

Can’t Continue If Haryana Govt Doesn’t Take Over
Joel.Joseph@timesgroup.com

Gurgaon:

Rapid Metro has told the Haryana government it will not be able to run trains after September 9 if no funds are made available to it, making the possibility of India’s first privately built and operated metro line coming to an abrupt halt more real than ever before.

Rapid Metro has had an uncertain run since its parent company, infrastructure major IL&FS, ran into a huge financial crisis and, with ridership nowhere near expectations, has been struggling to sustain itself.

Built on the premise that it would see an average daily ridership of 1 lakh per day in the first phase of its operations, Rapid Metro is struggling with just 60,000 daily even nearly two years after it opened Phase 2 (the corridor along Golf Course Road).

Last July, Rapid Metro, citing huge financial losses, had served a notice to the Haryana government, seeking a compensation of Rs 1,484 crore in order to sustain its operations.

Metro authorities then told the government that the money “is needed to cure material breaches and defaults in the concession contract” between the two.

Sources told TOI on Thursday that Rapid Metro has sent another notice to the government, making it clear that it would not be able to operate the network beyond September 9.

A senior government official, however, said they have a “back-up plan” in place. “While there is a possibility that Rapid Metro operations might get affected, post September 9, we have a back-up plan in place and are hopeful of handling any situation. We have about 20 days to firm up this plan and come up with a possible solution,” he said.

Last November, the Khattar government had initiated talks with Delhi Metro Rail Corporation for taking over and operating Rapid Metro. However, that plan seems to have not materialised. Rapid Metro authorities say they are yet to hear from the state government.

“We have informed the government on multiple occasions that we will not be able to sustain operations if the compensation is not provided. At present, the train operations are running as usual. We are still waiting to hear from the government,” said a source.

https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/PrintArticle.aspx?doc=TOIDEL%2F2019%2F08%2F23&entity=ar01221&ts=20190823002942&uq=20190716102018&mode=text

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