RInfra backs off from Mumbai Metro.

Reliance Infrastructure has backed off from a contract to build the second line of Mumbai Metro at an investment of Rs. 12,000 crore, citing 'non-fulfilment of various critical obligations' by the Maharashtra Government.

The concession agreement to build the Charkop-Bandra-Mankhurd line was terminated at 'no cost and no claims' to either party, the Anil Ambani-led company said. The State Government will return the bank guarantee of Rs. 160 crore vested with it.

A consortium led by R-Infra had secured the project through an international competitive bidding in 2009. The concession agreement was inked on January 21, 2010. Sources said the primary issue was 100 per cent right for construction of the project and allied infrastructure.

Depot land was another major issue, which required the Environment and Forests Ministry's clearance.

Given the close proximity to the Juhu Airport, the Airports Authority's approval, too, was required for the alignment and it was not forthcoming.

The issues had been repeatedly represented to the Mumbai Metropolitan Region Development Authority (MMRDA) and there was absolutely no progress over the last four years, the sources said.

'Due to non-fulfilment of various critical obligations, by State Government / MMRDA, the project could not take off,' R-Infra said.


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