05 August, 2021

Overhead Costs

The Reliance-DMRC row over the showcase Airport Express Line is a downer for PPPs

Jitender Gupta
Overhead Costs
outlookindia.com
-0001-11-30T00:00:00+05:53

The Players

  • Reliance Infrastructure Has offered to quit the project following differences with DMRC and recurring losses. Will have to run the operations till arbitration ends, despite losses.
  • DMRC Rejects Reliance’s claim; stands to shoulder losses, debt and interest of around Rs 3,000 crore if Reliance moves out. Failure of this project may affect future PPPs.

***

“If you don’t have electricity at home, will you go to Reliance officials or straight to Anil Ambani’s house?” asks Paresh Rawal, the protagonist in Oh My God, a recent movie. Multiplex audiences did crack up hearing this tongue-in-cheek reference to Ambani Jr—but there has been a real-life snafu that has got many raised eyebrows. Earlier this month, Anil’s Reliance Infrastructure, the concessionaire for Delhi Metro’s much-hyped Airport Express line, shot off a letter to the Delhi Metro Rail Corporation (DMRC) offering to quit...



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