The Mumbai Metropolitan Region Development Authority (MMRDA) executive committee has formally approved the appointment of a new consultant to undertake due diligence of the Metro Line 1 (Versova-Andheri-Ghatkopar) assets prior to its takeover.
In 2020, R-Infra (owned by industrialist Anil Ambani) wrote to the Maharashtra Government seeking a buyout of the company’s stake in Mumbai Metro One Private Ltd (MMOPL) which manages the Metro Line 1.
This 11.5 km line is Mumbai’s first Metro line and was built under a Public-Private Partnership (PPP) model. Currently, R-Infra has a 69 per cent stake in MMOPL while the MMRDA has 26 per cent and Transdev has a 5 per cent share in the undertaking.
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“Since MMRDA is constructing all Metro lines across the region, the acquisition will add synergy to the operation of other lines. Also since it is a public transport infrastructure and MMOPL is unable to run it, it is incumbent upon the government to take over,” MMRDA Commissioner, R.A. Rajeev said.
As per sources quoted by TOI, R-Infra is seeking ₹2,500-2,600 crores for its stake in the MMOPL. The consultant appointed by the MMRDA will survey the assets generated by the MMOPL and assess their value to be compared against the book value.
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This will allow the MMRDA to narrow down on the final amount paid to R-Infra. The consultant is expected to submit a detailed report within four months. Previously, the fare structure implemented in the operations had caused tension between the MMOPL and the MMRDA.
The MMOPL sought a fare hike due to the project cost increase of ₹1,935 crores on top of the original project cost of ₹2,356 crores. The agency also pointed out daily losses of around ₹90 lakh in its operations.
Also read - MMRDA To Take Over Metro One Operations
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