It is reliably understood that the Mumbai Metropolitan Region Development Authority's (MMRDA) decision to acquire the loss-making 'Ghatkopar - Andheri - Versova Metro 1' route was reversed due to the direct intervention of Prime Minister Narendra Modi. It is reported that Prime Minister Modi has directed the state government as this decision will cause a loss of around INR 650 crores to MMRDA.
The MMRDA started its process in March after the state government gave the green light to the acquisition decision. However, while acquiring 'Metro 1' from 'Mumbai Metro One Private Limited' ('MMOPL') i.e. Reliance Infra, 'MMRDA', the state government was going to incur a loss of INR 650 crores. At the same time, there were many technical difficulties in this acquisition. Therefore, Prime Minister Narendra Modi himself intervened and instructed Chief Minister Eknath Shinde to cancel the acquisition of 'Metro 1'.
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The MMOPL has built the 'Metro 1' line and the operation and maintenance of this line is also being done by the same company. MMRDA has 26 percent share, MMOPL has 69 percent share and others have 5 percent share in this route. The route, which has been in service since 2014 and was constructed at a cost of INR 2,395 crore, has been in financial loss since its inception. Therefore, MMOPL decided to sell this route a few years ago. It was requested that MMRDA, which has 26 percent stake in Metro 1, should buy this route. Accordingly, MMRDA had decided to acquire this route.
Developments behind the decision
The proposal for acquisition of 'Metro 1' at a cost of INR 4,600 crore was approved earlier in the meeting of the 'MMRDA' authority. The state government had also given the green light to it. The Prime Minister came to Mumbai on the occasion of a program while the process in this regard was going on. Sources informed that at that time he reprimanded the Chief Minister over the decision to acquire Metro 1. Due to this decision, MMRDA will incur a loss of INR 650 crore and only the concerned company will benefit from this. Therefore, the Prime Minister gave clear instructions to the Chief Minister to withdraw this decision. Sources also explained that the decision to cancel the process of acquisition of 'Metro 1' was taken in the Cabinet meeting in June only after the intervention of the Prime Minister.