Rapid Metro Rail Gurgaon Ltd, the joint venture between the largest real estate company DLF and Infrastructure Leasing & Financial Services Ltd (IL&FS) failed to achieve financial closure for its Gurgaon metro rail link project by November 30 deadline. The metro project is currently a 26:74 partnership between DLF and IL&FS.
"We will need some more time to achieve financial closure. It will probably be done by March next year," a senior official of Rapid MetroRail Gurgaon Ltd said.
However, financial closure is not the only stumbling block for this project, which is awaiting approval from the Centre for a detailed project report analysis. Sources in the urban development ministry said the Haryana government has already signed the concession agreement.
"Funding is not an issue for us. The Haryana government has already given its approval. We are awaiting Central government's nod. Once we get it we will start the project," a spokesperson of the company said.
Meanwhile, the urban development ministry is consulting with the law ministry on a couple of issues before it signs the concession agreement. The metro project which will cost Rs 900 crore will have 5 km of operative area and cover 6 stations.
In 2007, DLF had submitted the proposal of the metro link to the Haryana government to construct the metro link on its own. However, after the financial meltdown when the realty sector was hit hard, the largest listed company decided to become a minority partner in the joint venture with IL&FS. The idea germinated mainly because DLF wanted to increase connectivity in Guragaon as it was developing a lot of residential and commercial space in the area.
Source: Financial ExpressGurgoan metro misses financial closure deadline
