MUMBAI (Metro Rail News): IDBI bank has filed for bankruptcy proceedings against Mumbai Metro Line One Private Limited (MMOPL). Not long back, in August, SBI had also filed for bankruptcy proceedings against MMOPL.
The petition has been filed against MMOPL in the National Company Law Tribunal (NCLT), Mumbai. MMOPL is the authority operating the Blue Line from Versova to Ghatkopar. The amount of recovery against IDBI Bank stands at Rs. 133.37 Crores, with interests included.
Mumbai Metro One Private Limited (MMOPL) is a joint venture between Anil Ambani-owned Reliance Infra (RInfra) & MMRDa, with RInfra having a share of 74% while the remaining rests with MMRDA. It is a Special Purpose Vehicle (SPV) that was incorporated for the implementation of the 11.40 km Versova-Andheri-Ghatkopar line at an estimated cost of Rs 4,321 crore.
According to a rating statement from Brickwork Rating in November 2022, MMOPL had a bank loan of Rs 1650 Crores & ECB of USD 63.44 Million. Major lenders are:
|Syndicate Bank||Rs 650 crore|
|Indian Bank||Rs 500 crore|
|SBI||Rs 200 crore|
|Bank of Maharashtra||Rs 200 crore|
|IDBI Bank||Rs 100 crore|
Financial Situation of MMOPL
MMOPL’s net worth has eroded, and its current liabilities have exceeded its current assets. Additionally, it has an overdue obligation payable to its lenders. The metro firm reported a loss of Rs 345.26 Crore in FY2023 & Rs 388.70 Crore in FY2022.
Tussle with MMRDA
RInfra has filed various claims against MMRDA on account of damages incurred due to delays, land transfers, and changes in the designs. The amount of claims sums up to Rs 1,766.25 Crores, and the award remains reserved with the tribunal.
Impact on Commuters
Mumbai Metro Line 1 has the eighth-highest passenger density of any metro line worldwide. This particular development will have a major upheaval for the daily commuters on the Mumbai Metro Line 01. This development might disturb the continuity and quality of services on the line. As these Mass rapid systems are becoming the backbone of our Urban Life, such challenges need to be tackled with extreme care and confidence.
Mumbai Metro Line 1
Mumbai metro Line 1 runs on the Mumbai-Versova-Ghatkopar Line to cover a distance of 11.40 Km with a completely elevated stretch and 12 stations. It connects the eastern & western suburbs of Mumbai. The first metro service on the line was fagged off by the then Chief Minister of Maharashtra, Shri Prithviraj Chavan.
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