Reliance Infrastructure in syndicate with Y Auxiliar De Ferrocarriles, S A (CAF) of Spain inked financial agreements for long term loans with different financial institutions including lead manager Axis Bank in Delhi for their next project, Delhi Airport Metro Express Pvt. Ltd. (DAMEPL), a Special Purpose Vehicle (SPV).
The project seeks to implement a 23km metro line between New Delhi and airport and further extending it up to Dwarka.
Reliance Infra received total funding of Rs 2500 crore for a debt requirement of Rs 2020 crore. For an investment of Rs 2885 crore project with the Debt to Equity Ratio of 70:30, the company was able to close the funding at 255 points lower than prime lending rate of Axis Bank, which is the lead banker for the deal. India Infrastructure Finance Company Ltd (IIFCL) Bank of India, Canara Bank, Central Bank of India, Andhra Bank, Allahabad Bank, Dena Bank, Punjab & Sind Bank, and UCO Bank, are some of the other financial institutions in the deal.
Delhi Station, Shivaji Stadium, Dhaula Kuan Station, NH8 Station, IGI Airport Station and Dwarka are the six stations the project contains. The metro line will run underground with 5 underground stations and one elevated.
“Reliance Infrastructure is committed to the development of this project to world class standards well within record time of 30 months, before the Commonwealth Games. We got the LOI in January 2008 and have not only completed the major portion of design and engineering but also have awarded all major contracts.” Director of the project, K.P. Maheshwari said.
The New Delhi, Shivaji Stadium and Dhaula Kuan is the world renowned consultant from Hong Kong from MTR Corp, the company that developed that entire rail network in Hong Kong.
“DAMEL, Delhi project is another step towards establishing us as a leading player in building urban transport infrastructure that will provide further impetus to the country’s rapidly accelerating economic growth,” Maheshwari added.
The project will ensure smooth passengers interchange and remote checking of baggages at three stations- New Delhi, Shivaji Stadium and Dhaula Kuan. The stations will be air conditioned and will have platform screen doors. The revenue will mainly come from the tickets and retail activities at the station and advertisement and other commercial activities.