Gurugram’s Rapid Metro likely to face closure as IL&FS crisis deepens: Sources

India’s one of its kind fully privately financed Rapid Metro system, developed by IL&FS Infrastructure, is likely to face a closure due to the financial crisis.

IL&FS

Sources reveal that the company is under tremendous financial crisis for sometime now and unable to run its services any further.

Recently, V. Uma Shankar, CEO of Gurugram Metropolitan Development Authority (GMDA) said that the takeover of the Rapid by the Haryana government is unlikely to be an easy affair. He said that the matter was pending in the National Company Law Tribunal (NCLT). “Until the NCLT gives any decision, there is no scope for the GMDA to take over the Metro,” Shankar said.

IL&FS Infrastructure constructed the rapid metro in two phases. In the first phase, the company built 5.1 km elevated track, connecting National Highway No 8 at Shankar Chowk to Sikandarpur DMRC station, covering 6 stations.

Developed in three years at a cost of Rs 1,450 crore, the service was unveiled for public in November 2013

The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the BFSI industry. Join Us for Elets National CIO Virtual Conclave and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.