Reliance Infrastructure (RInfra), which was awarded the contract for construction of the elevated Metro II from Charkop to Mankhurd via Bandra in Mumbai, alleged that the MMRDA has not fulfilled its obligations.
As per the contract, both parties have to fulfil their obligations to commence project work. Reliance has fulfilled all its obligations, such as depositing bank guarantee of over Rs 100 crore and ensuring bank loans for a Rs 10,000-crore project.
However, the project can't be started until the MMRDA fulfils its obligations, like getting environment clearance, clear way for construction, and developmental rights to make Metro II financially feasible, reports quoted RInfra source as saying. The Anil-Ambani led firm received permission to build car depots at Mankhurd and Charkop only on stilts, which is a costly affair.
RInfra said this in response to a recent directive by the MMRDA to the firm asking it to start work at the earliest or face action.
In the letter, RInfra termed MMRDA's directive as "arbitrary, completely misplaced and totally unfounded". The contract was awarded to RInfra three years ago but the project has not moved off the drawing board yet.
The firm says no permission has been received to wash trains at depots, thus making the project unfeasible for the developer. No civil aviation nod has been given for a stretch of the elevated route near the Juhu airport ; there are hurdles in the form of high voltage electric lines and no rights to exploit commercially the route with an FSIof 4, making the project a financial nonstarter, RInfra said.