IL&FS venture ties up debt for Rs 2,143 cr Gurgaon project

Rapid MetroRail Gurgaon South Limited, (RMGSL) a special purpose vehicle (SPV) promoted by IL&FS Rail Limited (IRL) and IL&FS Transportation Networks Limited (ITNL) for executing the Phase II of the Rapid Metro Project in Gurgaon has successfully arranged debt funds for the Rs 2,143 crore project.

RMGSL had signed the Concession Agreement with Haryana Urban Development Authority (HUDA) in January this year after wining the extension project through an open tender process.

The project is being implemented on Public Private Partnership basis. A consortium of three banks led by Canara bank will give RMGSL a loan of Rs 1,500 crore, while the company will invest Rs 643 crore as equity.

Work on the Phase II will start shortly and will connect Sikanderpur to Sector 55-56, a 7-km route with six stations. On completion of Phase I and II, Rapid Metro network will be a 12 km long system with 12 stations.

The first phase of the project is likely to commence operations from May this year.

The Rapid Metro would have a network spread of more than 20 kms on completion of all the three phases. Phase I of the network would connect Delhi Metro Sikanderpur station to Cyber City.

This phase is expected to be operational by May this year and will have a network span of 5.1 km with six stations. Phase II, known as South Extension, will connect Sikanderpur to Sector 55-56. Phase III, which is under planning, will provide connectivity to Udyog Vihar and Old Gurgaon.