NEW DELHI: Top officials from the Union Ministry of Housing and Urban Affairs (MOHUA), Delhi Government and Delhi Metro Rail Corporation (DMRC) will meet on Thursday to address the payment of arbitral award to Delhi Airport Metro Express Pvt Ltd. (DAMEPL), officials said. Officials also said that representatives from leading banks will also remain present in the meeting.
The meeting is being held after the metro corporation sought assistance of city government and the central ministry to pay the Reliance-led DAMEPL Rs 4,500 crores of arbitrary sum. Delhi government and MoHUA have equal partnership with 50:50 stakes in the DMRC, for making payment of arbitral award to DAMEPL.
“The meeting, scheduled to be held tomorrow at 4: 30 pm will also be attended by both the MD and Director Finance of DMRC,” an official informed. The move is aimed to find a workable solution to honor the Supreme Court’s order issued in 2021 which directed the DMRC to pay DAMEPL `4,500 after a contract to operationalise Airport Metro line dissolved by both parties.
In 2008, DMRC signed a contract with DAMEPL related to the design, installation, commissioning, operation, and maintenance of the metro line. DMRC in 2012 invoked arbitration after DAMEPL terminated the concession agreement since the former failed to start construction within the stipulated 90 days. The SC in 2017 directed arbitral award favouring DAMEPL.
However, after receiving no payment from the metro corporation, DAMEPL filed a plea in Delhi HC this year seeking enforcement of the arbitration award. The HC passed an order directing DMRC to pay DAMEPL the entire amount in two equal installments. However, the DMRC failed to comply.
DMRC had earlier stated in the court that it is financially constrained to arrange required funds from its internal resources or through debt from banks, as it will fall into a debt trap. Hence, it has approached its equity partners for financial assistance.