DMRC has written to UP govt, asking for Rs 302 crore as compensation for revenue losses on the Red Line during the two pandemic years (2020-2022). Govt has asked GDA to look into the demand.
In response, GDA chairperson Atul Vats commented that the compensation demand is “illogical” and since DMRC doesn’t share profits, there is no question of splitting the losses. “A memorandum of understanding (MoU) was signed between GDA and DMRC for the extension of the Red Line metro corridor from Dilshad Garden to Shaheed Sthal New Bus Adda. But there was no clause that said GDA should split losses incurred by DMRC,” Vats said.
A response has been sought by govt and GDA will submit it shortly, he added.
DMRC had earlier declined to pay Rs 56 crore due to GMC as service tax. UP govt later gave DMRC an exemption.
However, DMRC officials said that they were seeking compensation for “operational loss” from the state. A statement issued by DMRC’s principal executive director Anuj Dayal states: “We have written to the governments concerned on the issue of losses incurred during the pandemic from time to time. However, at this stage, we would not like to comment any further on this issue.”
In June 2014, GDA and DMRC signed a MoU for the extension of Rithala-Dilshad Garden to Shaheed Sthal New Bus Adda. The project was to be completed for Rs 1,781.2 crore. The 2014 project report had projected 1.2 lakh ridership for the Red Line corridor.
In 2019, the PM Narendra Modi inaugurated the 9.4-km Red Line metro extension project. The elevated corridor has eight stations — Shaheed Nagar, Raj Bagh, Rajendra Nagar, Shyam Park, Mohan Nagar, Arthala, Hindon River and Ghaziabad New Bus Adda.
