A company spokesperson has confirmed that the metro is unable to operate further due to piling losses.
Beset by low ridership and financial woes, Gurugram Rapid Metro may be forced to stop operations from September 9, according to a report by news agency IANS.
Built by IL&FS Infrastructure, it was the first privately financed Rapid Metro system.
A company spokesperson has confirmed that the metro is unable to operate further due to piling losses.
"We have written to the Haryana government that the company won't be able to run the service from September 9. We have urged it for takeover and are waiting for the reply," the spokesperson said in the report.
But since the matter has not been cleared by the National Company Law Tribunal (NCLT), the Gurugram Metropolitan Development Authority (GMDA) cannot take over operations.
A resident in Gurugram said that the rapid metro connects high-end localities where most residents own luxury vehicles with private drivers. Therefore, failure to attract ridership is quoted as one of the reasons for the failure of the rapid metro.
The metro project was built in phases with an outlay of Rs 1,450 crore in phase one and Rs 2,143 crore in the second phase. The service became functional to the public in two phases in November 2013 and December 2016.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
