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| DLF-IL&FS consortium bag Rs 900-cr Haryana Metro project |
| Press Trust of India / Gurgaon Aug 11, 2009, 15:10 IST |
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The country's largest real estate player DLF today announced a fully privately financed metro rail project for its townships in Gurgaon with a project cost of Rs 900 crore.
"The government of Haryana has awarded the construction of the metro system in Gurgaon. A consortium of DLF and IL&FS has bagged the contract.The process to form a special purpose vehicle is on to construct and operate the system," DLF said.
The project called 'DLF MetroRail, Gurgaon' has been bagged on concession by the consortium for a period of 99 years to build and operate the metro sytem, it added.
The consortium, where DLF would have a 26 per cent stake while IL&FS would hold the rest, would invest invest Rs 900 crore in developing the project.
According to a DLF spokesperson, the Special Purpose Vehicle (SPV) would raise Rs 700 crore within the next 6 months. The mode of raising would, however, be decided in due course of time.
The 6.1 km metro link with standard gauge line would be completed within the next 30 months, DLF said. The metro route, having six stations, would connect the Delhi metro station at Sikandarpur and would act as the feeder of the Central Secretariat-Gurgaon line of the Delhi Metro Rail Corporation, DLF said.
On fund raising plans for the project, DLF Vice-Chairman Rajiv Singh said, "IL&FS has the mandate to raise the total debt. In today's market scenario it is little difficult, but IL&FS is confident of raising money in the next few months."
DLF would also be contributing its share of equity apart from all other logistics support, he added.
On the future expansion of the project, Singh said, "We anticipate that in the long term this project has a potential of being in excess of 20 kms with an investment proportionate to Rs 2,000-3,000 crore."
"We will have our revenue sharing arrangement with the DMRC," he said further.
While DLF Metro Rail would retain all revenues generated from sale of tickets, all non-ticketing income would be shared with the Haryana Urban Development Authority (HUDA) at a certain proportion.
For the first five years the company would contribute five per cent of the revenue to HUDA, while in every subsequent five years it will be increased by one per cent till it reaches the 10 per cent figure.
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