DMRC refers Airport line case for arbitration; rules out financial restructuring

New Delhi: Delhi Metro Rail Corp (DMRC) has ruled out financial restructuring of the Airport line operated by Reliance Infrastructure but said the concessionaire will run the line until the arbitrator takes a decision on various issues, including termination of the agreement.

Reliance Infra's Delhi Airport Metro Express Pvt Ltd (DAMEPL), had to stop operations in July on technical and safety issues. The operation has also been marred by financial hardships and disputes between DMRC and the concessionaire.

"Issues raised by M/s DAMEPL regarding financial non-viability of the project and also their request of re-structuring has been rejected by DMRC. On request of M/s DAMEPL, the dispute is now being referred to Arbitration. Similarly, the issue of termination of the Concession Agreement has been disputed and the same has also been referred for resolution through Arbitration proceedings," DMRC managing director Mangu Singh said in a statement.

DAMEPL said it would resume operations soon. "The repair work executed by Delhi Metro Rail Corp is nearing completion. We will recommence the operations of Airport Metro line soon after getting the necessary safety clearances. DAMEPL, as the Concessionaire will run the line," it said in an emailed statement. It did no comment on the issue of termination.

Delhi Metro said that DAMEPL would continue to run the line until the dispute is resolved.