According to reports, the cost of the underground Metro 3 project has escalated by over INR 10,000 crores to INR 33,406 crores from the original estimate of INR 23,136 crores in 2016.
Earlier, when tenders were invited in 2016, the cost was based on the 2011 estimate. Moreover, the escalation proposal was submitted to the state finance department by the Mumbai Metro Rail Corporation (MMRC), which is implementing the 33.5 km rail link between Cuffe Parade and Seepz, in February. The finance department is yet to clear it.
According to a report in the Times of India, “There is a perception that no further cost should be approved till the controversy over the location of the car shed is resolved,” a government source said.
On the other hand, the Mumbai Metropolitan Region Development Authority (MMRDA) has taken over the operation and maintenance of Mumbai Metro’s Line One. According to reports, MMRDA has further approved the appointment of a consultant to carry forward the due work before a takeover.
Moreover, this 11.5 km line is Mumbai’s first Metro line and was built under a Public-Private Partnership (PPP) model and commissioned in 2014.
This comes after Reliance Infrastructure, which runs the corridor had decided to offload its stake in the project. MMRDA earlier had a 26 per cent stake in the special purpose vehicle whereas Anil Ambani owned Reliance Infrastructure held 69 per cent.
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