DMRC invites bids from 18 banks to raise loans to buy Airport Line assets

DMRC has invited bids from 18 banks to raise loan to the tune of Rs 2,700 cr for "purchase of Airport Line assets," according to letters sent to these banks by the urban transporter.

This comes in the backdrop of the Supreme Court early May upholding a Delhi High Court order directing the Delhi Metro Rail Corporation (DMRC) to pay over Rs 4,600 crore of arbitral award along with interest to the Delhi Airport Metro Express Private Limited (DAMEPL) in two equal installments in two months.

According to the letter dated May 19, sent to 18 major banks, "DMRC proposes to raise loan to the tune of Rs 2,700 crores for purchase of Airport Line assets".

Banks who are willing to extend the above loan, are requested to submit their bid on the broad terms and conditions, it said.

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.

"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," reads the letter, a copy of which is with PTI.

"The unpriced bid shall have the confirmation of the statements contained therein and priced bid contains applicable rate for the loan," according to the letter.

The Airport Express line, connecting New Delhi station and city airport was commissioned on February 23, 2011, after an investment of over Rs 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.

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 May 11, 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.