PremiumThe Airport Express line, connecting New Delhi station and city airport was commissioned on 23 February 2011, after an investment of over ₹2,885 crore, funded by the DAMEPL's promoters' fund, banks, and financial institutions
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The Delhi Metro Rail Corporation (DMRC) has invited bids from 18 banks to raise loans up to ₹2,700 crore for the “purchase of Airport Line assets", reported news agency PTI, quoting letters sent to the banks.
“DMRC proposes to raise loan to the tune of ₹2,700 crores for purchase of Airport Line assets," read the letter dates 19 May.
The letter has been sent to State Bank of India, Canara Bank, Axis Bank, Bank of Baroda, HDFC Bank, ICICI Bank, and Yes Bank, among others.
Banks who are willing to extend the above loan, are requested to submit their bid on the broad terms and conditions, it said.
"DMRC invites bids in two parts i.e. part I – unpriced bid and part II – price bid from banks to whom this letter of invitation is sent to submit their most competitive rate," read the letter.
"The unpriced bid shall have the confirmation of the statements contained therein and priced bid contains the applicable rate for the loan," it added.
This comes in the backdrop of the Supreme Court in early May upholding a Delhi High Court order directing the DMRC to pay over ₹4,600 crore of the arbitral award along with interest to the Delhi Airport Metro Express Private Limited (DAMEPL) in two equal instalments in two months.
The high court on 10 March had directed the DMRC to pay over ₹4,600 crore. The court had said the first and second instalments shall be paid on or before 30 April and 31 May this year.
The high court's judgment had come on DAMEPL's execution petition filed against DMRC concerning the arbitral award in its favour.
It had said the 11 May 2017 arbitral award has attained finality and cannot be allowed to remain as a paper award and added the judgment debtor DMRC is duty-bound to either divert its funds after seeking permission of the central government, if necessary, or raise loans to satisfy the award.
The Airport Express line, connecting New Delhi station and city airport was commissioned on 23 February 2011, after an investment of over ₹2,885 crore, funded by the DAMEPL's promoters' fund, banks, and financial institutions.
DMRC had built the civil infrastructure while Reliance Infra's Delhi Airport Metro Express (DAMEPL) had brought in rolling stock.