 "Reliance Infra cancels Mumbai Metro line 2 concession agreement")
The Congress-Nationalist Congress Party alliance government through an international competitive bidding had awarded the project on August 3, 2009, to the consortium led by R-Infra. The Concession Agreement was executed on January 21, 2010, between the state and MMTPL. With the termination of the agreement, the Bharatiya Janata Party government is expected to soon take a call on inviting fresh bids for the proposed metro line.
“Due to non-fulfillment of various critical obligations by the government of Maharashtra/Mumbai Metropolitan Region Development Authority (MMRDA) the project could not take off. Even after four years, despite of the best efforts by the government of Maharashtra, various project impediments could not be resolved. The parties (MMTPL and Government of Maharashtra) agreed to terminate the concession agreement at no cost or claim to either party with the government of Maharashtra to return the bank guarantee (of Rs 160 cr) to MMTPL. Accordingly, the agreement to this effect has been executed between MMTPL and government of Maharashtra,” RInfra said in a release.
The company said its commitments/liabilities towards the project, including the commitments towards funding the project, have been annulled with immediate effect with the termination of the concession agreement.
In response to the release issued by RInfra, MMRDA Joint Commissioner Dilip Kawathkar said, “The concession agreement arrived at between the state government and the Mumbai Metro Transport Private Ltd has been terminated mutually. A formal communication from MMTPL for return of the bank guarantee is awaited and the procedure to return the bank guarantee will follow immediately thereafter.”
The foundation stone for the Mumbai Metro II project was laid by former president Pratibha Patil in August 2009 ahead of the Assembly elections. However, the project got dogged by controversies, delays and litigation. RIfra could not start the project as the car depot site was under the coastal zone regulations, and the ministry of environment and forests had raised objections against it.
Furthermore, there was a delay in the provision of 100 per cent right of way to MMPTL. The Airports Authority of India had imposed constraints on the construction height near the Juhu airport in north-west Mumbai.
Former chief minister Prithviraj Chavan in June this year announced that MMRDA had engaged the central government undertaking RITES to prepare a report on the conversion of Charkop-Bandra-Mankhurd Metro line to an underground one and extended up to Dahisar in north Mumbai. The report is still awaited.
Already, the 11.4-km Versova-Andheri-Ghatkopar Metro-I line was commissioned on June 8 after missing about eight deadlines since 2007. This apart, the construction of the proposed 32.5 km-long, Rs 23,136-crore Mumbai Metro-III project between Cuffe Parade in South Mumbai and SEEPZ, Andheri, will begin in December.