DMRC invites bids from 18 banks to raise loans to ‘buy airport line assets’

DMRC has launched a call for tenders with 18 banks to raise loans of up to Rs 2,700 cr for “the purchase of Airport Line assets”, according to letters sent to these banks by the urban carrier. This comes against the backdrop of the Supreme Court in early May upholding a Delhi High Court order ordering the Delhi Metro Rail Corporation (DMRC) to pay more than Rs 4,600 crore of the arbitration award as well as interest at Delhi Airport Metro Express Private Limited (DAMEPL) in two equal installments in two months.

According to the letter dated May 19, sent to 18 major banks, “DMRC is offering to raise a loan in the amount of Rs 2,700 crores for the purchase of Airport Line assets.” Banks that are willing to provide the above loan are welcome to submit their offer under the general terms and conditions, he said.

The letter was sent to State Bank of India, Canara Bank, Axis Bank, Bank of Baroda, HDFC Bank, ICICI Bank and Yes Bank among others. “DMRC is inviting Bids in two parts, i.e. Part I – The Priceless Offer and Part II – The Price Offer from the banks to whom this invitation letter is sent to submit their rate the most competitive,” reads the letter, a copy of which is with PTI.

“The offer without price must have confirmation of the statements contained therein and the offer with price contains the applicable rate for the loan,” according to the letter. The Airport Express line, linking New Delhi Railway Station and the city’s airport, was commissioned on February 23, 2011, after an investment of over Rs 2,885 crore, financed by the promoters’ fund of DAMEPL, banks and financial institutions.

DMRC had built the civil infrastructure while Reliance Infra’s Delhi Airport Metro Express (DAMEPL) had provided rolling stock. The judgment of the High Court had intervened on the petition for execution of DAMEPL filed against DMRC concerning the arbitral award in its favour.

He had stated on May 11, 2017 that the arbitration award had reached finality and could not remain as a paper award and added that the judgment debtor DMRC was required to misappropriate its funds after seeking permission from the central government, if necessary, or raise loans to satisfy the reward.

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