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RInfra’s SPV 'DAMEPL' exits from Delhi Airport Metro Operation

01 Jul 2013 Evaluate

Reliance Infrastructure’s (RInfra) a Special Purpose Vehicle -Delhi Airport Metro Express (DAMEPL) had terminated the Concession Agreement with the Delhi Metro Railway Corporation (DMRC) for the Delhi airport metro line nearly 9 months back, vide its notice dated  October 8, 2012.

This takeover of operations has now been completed-As per the terms of the Concession Agreement, DMRC is now liable to pay DAMEPL a Termination Payment equal to 130% of the Adjusted Equity and 100% of the Debt Due for the project, as the termination has arisen owing to DMRC’s Event of Default. The matter has been referred to arbitration, in accordance with the dispute resolution mechanism specified in the Agreement. As legally advised, DAMEPL’s claims for the Termination Payment are fully justified and enforceable, and RInfra is confident of recovering its entire investment in DAMEPL.

Reliance Infrastructure is the largest infrastructure company developing projects, through various Special Purpose Vehicles; in several high growth areas in Infrastructure sector i.e. Roads, Metro Rail, Airports, etc. The Company is also leading utility company having presence across the value chain of power businesses i.e. Generation, Transmission, Distribution, EPC and Trading.

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