Reliance Infrastructure, an Anil Dhirubhai Ambani Group company, has finalized most of its contracts for the metro rail link between Delhi international airport and city centre. However, the company has not divulged the value of the contract, media reports said.

The Delhi Airport Metro Express Pvt. Ltd. or DAMEP, a special purpose vehicle floated by Reliance Infra and Spanish firm CAF won the 30-year concession contract from Delhi Metro Rail Corporation Ltd. or DRMC, New Delhi, to design, build, finance, operate and maintain the 22.7 km rail link. After completion of the concession period, the facility will be transferred back to DRMC. Reliance Infrastructure holds 95% equity stake in DAMEP, while CAF holds the rest.

The company said it has ordered coaches that are in standard gauge on CAF. A top Reliance Infra official in charge of the metro projects quoted to have said the SPV would procure eight trains, each comprising six coaches from CAF and the deliveries to commence from January 2010. He added that all the coaches would be manufactured in CAF's facilities in Span. CAF would be responsible for the maintenance of coaches for seven years.

The equipment for signaling, power supply and baggage handling will be sourced from Siemens, Germany and its Indian subsidiary, the company said.

Reliance Infra said the orders for the platform screens were placed with Faiveley, while automatic fare collection will be sourced from the Spanish firm, Indra. The tunnel ventilation equipment will be procured from ETA, whereas Alcatel will provide the communication equipment such as fibre optics, passenger information system, CFCT and master-clock.

For DAMEPL, the project will entail an investment of Rs.2,885 crore with debt-equity ratio of 70:30. The metro rail link has to be operational by July 2010, before the Commonwealth Games.

K.P. Maheshwari, Project Director, quoted to have said the company recently inked the financing agreements for long-term loans from financial institutions and a sanction of around Rs.2,500 crore, compared to a total debt requirement of Rs.2,020 crore has been achieved.

For DAMEPL, the cost of funds is 225 basis points below the Axis Bank's prime lending rate. The funds have a door-to-door tenor of 17.5 years and will have a 14.5-year repayment period with a ballooning repayment schedule. It is staggered in such a way that the repayment increases towards the end of the period, said the official.

At the BSE, Reliance Infra shares are currently trading at Rs.522.00, down by Rs.45.30 or 7.99% on a volume of 10.36 lakh shares. The company's scrip touched an intraday high of Rs.557.95 and an intraday low of Rs.520.20.

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