Concessionaire Reliance Infrastructure said that the termination is due to the government of Maharashtra failing to fulfill various obligations for the project, which involves the Charkop - Bandra - Mankhurd corridor.
The project was awarded in 2009 to a Reliance-led consortium following an international competitive bidding process. The estimated project cost was about Rs12,000 crore (£1.24bn).
The Maharashtra government and the concessionaire have signed the termination agreement on the basis of 'no cost and no claims' to either party. The government is to return the bank guarantee of Rs160 crore.
Reliance Infrastructure holds 48% of the equity in the concession company, Mumbai Metro Transport Private Limited (MMTPL). The concession agreement between the government of Maharashtra (GOM) and MMTPL had been executed on 21 January 2010.
“Due to non-fulfillment of various critical obligations, by GOM/Mumbai Metropolitan Region Development Authority (MMRDA), the project could not take off,” said Reliance. It added that, even after four years, various project impediments could not be resolved despite of the best efforts by the government of Maharashtra.