DMRC may have to pay Rs 1.75 cr to Reliance Infrastructure Limited per day

Image Source: Internet

New Delhi, India (Metro Rail Today): Delhi Metro Rail Corporation (DMRC) seems to be in trouble after the order of supreme court on the Airport express metro case. As per the order of the Supreme Court, DMRC has to pay a compensation of Rs 7100 crore to Reliance Infrastructure Limited. There was a lot of discussion on this issue in the meeting of the Board of Directors of DMRC on Friday. Delay in payment to Reliance Infra may increase the financial burden of DMRC.

According to the sources, Supreme Court ordered DMRC to pay the arbitration amount along with interest to Reliance Infrastructure. DMRC was to pay an amount of Rs 7100 crore immediately after the order, but instead of paying, DMRC continued to explore other options. In such a situation, the experts believe that the more the DMRC delays the payment of the arbitration amount, the more it will have to bear the financial loss. It is being told that due to delay, DMRC may have to pay additional interest at the rate of Rs 1.75 crore per day and Rs 53 crore per month. The amount of arbitration was Rs 4,663 crore in 2017, which has now increased to Rs 7100 crore by September 2021 due to the delay in payment.

DMRC does not have much option in this matter at present and as time passes, the amount of compensation is also increasing. It cannot be decided in the meeting of the board that how and from what head the amount of compensation will be paid. In such a situation, DMRC may take more time to take a decision on this.

In 2008, Reliance Infrastructure's unit had entered into a contract with DMRC. The contract was for running the city rail project till 2038. Ambani's firm stopped operating the Delhi Airport Metro Project in 2012.They stopped the operation due to disputes over fee and operation. The firm initiated an arbitration case against the DMRC alleging violation of contract and requested a termination fee.


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