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Reliance Infra backs out from Mumbai Metro Line II project

India TV Business Desk 14 Nov 2014, 13:21:02 PM IST
India TV Business Desk

Mumbai: Anil Ambani-led Reliance Infrastructure (R-Infra) on Thursday pulled out from a contract to build a second line of Mumbai Metro citing non cooperation from the state government. The project was worth Rs 12,000 crore.

The company has also asked for the return of Rs.160 crore bank guarantee.

In a statement, Reliance Infra said the various obligations listed under the concession agreement were not fulfilled by the state government for the project to connect Charkop in north Mumbai with Bandra in the west and Mankhurd in the east.

“The Government of Maharashtra and the concessionaire signed the termination agreement at no cost and no claims to either party,” the company said.

The state government had awarded the contract to Mumbai Metro Transport Private Limited (MMTPL), in which R-Infra has shares on a Build-Operate-Transfer (BOT) basis. The concession agreement was inked on January 21, 2010.