Rapid MetroRail Gurgaon Ltd

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The Rapid Metro Rail Gurgaon Limited (RMGL), entered into a 99 year Concession Contract with Haryana Urban Development Authority (HUDA) to develop the 6.1 km rail metro link in Gurgaon under design, build, finance, construct, install, commission, operate and maintain basis in December 2009. The line was originally tendered by the Haryana Urban Development Authority (HUDA) in 2007 as a point-to-point 3.2km link between Sikanderpur and National Highway 8, but DLF wanted to expand it to provide connectivity to its Cyber City. A second tender was issued in July 2008 the DLF-ILFS consortium emerging as the only bidder. While HUDA initially objected to a private company making profit from public transport, an agreement was eventually reached for the consortium to pay HUDA 7.65 billion (US$166 million) over 35 years in "connectivity charges" as well as 5-10% of advertising and property development revenue. The project envisaged the development of a metro link for providing last-mile connectivity from Delhi Metro’s Sikanderpur station on MG Road to NH-8 over a 60-metre-wide sector road (Vishwakarma Marg), where DLF Cybercity is located. The project provided further scope of extending the metro link to sector 55-56 in south Gurgaon and Udyog Vihar and Sector 21 Dwarka in the north. The company was required to finance, design and construct all the civil works. The concessionaire was also required to procure and install all systems including the rolling stocks, overhead electrification, track, signalling and telecommunication, ventilation, air-conditioning, automatic fare collection, depot and other systems and facilities required for a successful metro link. The Gurgaon Metro BOT contract was signed with RMGL in December 2009 and financial closure was expected to be to be achieved within 6 month from the date the contract was awarded. The construction period for the alignment is two and half years from the date of commencement (January 2013). RMGL was special purpose vehicle sponsored by IL&FS Transportation Networks Limited (ITNL) with 74% and ITNL Enso Rail Systems Ltd. (IERS), in partnership with DLF Metro Ltd (DLF) with 26% to implement the project. ITNL ENSO Rail Systems (IERS) was formed by IL&FS Transportation Networks (India) Limited (ITNL), a fully owned company of Infrastructure Leasing and Financial Services Limited (IL&FS), ENSO Group and SRKK Advisors to create a Rail transport business. ENSO Group came into existence in 2007. The Group has embarked on many successful ventures in Oil & Gas, Infrastructure & Real Estate, Surveillance & Tracking, and Strategic Investments. DLF Metro Ltd was a subsidiary of DLF. It was responsible for the construction, operation and maintenance of five kilometer Metro link which will connect Sikanderpur station of Delhi Metro to NH-8 in Gurgaon. The total project cost has been estimated at INR. 10.88 billion (US$ 237.92 million) to be funded in debt: equity ratio of 70:30, aggregating debt finance of INR 7.616 billion. Financial closure was achieved on June 5, 2010. The senior debt facility was syndicated on a consortium banking format consisting of eight banks. The project finance arranged at a rate of 10.50% pa within the shortest span of time, given the long tenor of the Loan facility - door-to-door loan tenor of 17 years and 9 months. In 2012, the Haryana Urban Development Authority had subsequntly awarded a project to a consortium of IRL and ITNL for developing the 6.5 km rail Metro Link Extension from Sikanderabad Station to Sector 56, Gurgoan. This would be an extension to the existing network above. Rapid MetroRail Gurgaon South Limited (RMGSL) was formed to execute this stretch. In March 2013, IL&FS Financial Services Ltd (IFIN) had successfully completed the debt of US$ 256mn (INR 15000mn @58.6 INR/USD)tie-up for this stretch.