A memorandum of understanding (MoU) was signed between the main stakeholders — ministry of urban development, Haryana government and Delhi Metro Rail Corporation (DMRC) — for operation and maintenance of the Rapid Metro Rail Gurgaon on Thursday.
The first-of-its-kind private Metro service model was formally sanctioned by the ministry but with a clause to safeguard interests of passengers.
A new condition has been introduced which allows takeover of operations by the Haryana government and subsequent transfer to DMRC if the private operator fails to run the 6.1-km long Metro line.
The MoU was signed in the presence of urban development minister Kamal Nath, Haryana chief minister Bhupinder Singh Hooda and DMRC managing director E Sreedharan.
The total cost of the jointly-promoted project by IL&FS group companies and DLF is Rs 1,088 crore and is expected to be operational by January 2013. "In case the private party fails to provide and run the system satisfactorily, the Haryana Urban Development Authority will take over the system with all its liabilities and hand over the same to DMRC for operation and maintenance," said Sudhir Krishan, secretary, urban development ministry.