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Reliance Infrastructure on Thursday announced the cancellation of Rs 12,000 crore (Rs 120 billion) Mumbai's Metro Line 2 project citing non-fulfillment of certain obligations by Maharashtra government.
"Mumbai Metro Transport Pvt Ltd (MMTPL) wherein Reliance Infrastructure holds 48 per cent of the equity and government of Maharashtra have executed a termination agreement to cancel the concession agreement for the Mumbai Metro Line 2 Project (Charkop -Bandra-Mankhurd corridor," the company said in statement.
The project was awarded by Maharashtra government to Reliance Infrastructure-led consortium in August 2009 through an international competitive bidding.
The estimated cost of the project was about Rs 12,000 crore (Rs 120 billion).
"Due to non-fulfilment of various critical obligations, by GOM/ Mumbai Metropolitan Region Development Authority (MMRDA), the project could not take off. Even after four years, despite of the best efforts by Maharashtra government, various project impediments could not be resolved," Reliance Infrastructure said.
Both parties agreed to terminate the concession agreement at no cost or claim to either party, with government of Maharashtra to return the bank guarantee (of Rs 160 crore) to Mumbai Metro Transport Pvt Ltd.
With the termination of the agreement, all commitments or liabilities of Reliance Infrastructure towards the project including the commitments towards funding the project have been annulled with immediate effect.