Delhi Metro Rail Corporation has issued a letter of intent to the consortium comprising Reliance Energy and Spanish rolling stock firm CAF to operate and manage a 19.2 km metro rail link between New Delhi city centre and international airport for a period of 30 years.

The total contract is valued at Rs.4,000 crore. The civil works for the project, involving construction of viaduct, underground tunneling works and construction of stations, will be done by DMRC itself, the consortium will be involved in putting up equipment and the rolling stock at a cost of about Rs.2,500 crore.

As per the LoI, REL will set up a special purpose vehicle with 5 per cent equity participation from Spain's CAF and within 60 days of the issue of LoI, the SPV will sign a concession agreement with DMRC.

The SPV will design, maintenance and operate the metro link that will be operational by July 2010 and the SPV will pay a concession fee during the first year of operation to DMRC.

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