With the bankrupt IL&FS group struggling with myriad challenges, the Delhi Metro Rail Corporation (DMRC) has come to the rescue of Gurgaon Rapid Metro, owned and operated by an IL&FS group firm, by taking over the metro’s operations.
Gurgaon Rapid Metro is owned by IL&FS Transportation Network Ltd (ITNL), a subsidiary of the bankrupt IL&FS group. The Rapid Metro was built on the Public Private Participation (PPP) model by the Haryana Government.
According to sources in the Ministry of Housing and Urban Affairs, the ministry had asked DMRC to take over the project after ITNL’s parent company IL&FS went bankrupt defaulting on debts and in October 2018, the central government took control of the management of IL&FS. Since then the Haryana government and the Centre have been planning for a smooth handover of the management.
This is the second time that the DMRC has come to the rescue of a private player. The first time it did so was when it took over operations of Airport Express Metro in 2013.
"From the start of the service on February 5, operations of Rapid Metro will be taken over by DMRC. The services will be run according to the existing timetable and fare," minutes of the DMRC meeting said.