Mumbai (Metro Rail News): The city’s only operational Metro corridor—Metro One—built on public-private partnership (PPP) with Anil Ambani’s Reliance Infrastructure may be taken over by MMRDA according to sources in the government. The state government has asked the agency to undertake due diligence before moving ahead with it.
MMRDA has 26% stake in Mumbai Metro One Pvt Ltd (MMOPL), which runs the Metro, while Reliance Infra holds 69%. It has operated the 12-km Versova-Andheri-Ghatkopar corridor since 2014. “The state has asked MMRDA to come up with the terms and conditions and also ascertain the liabilities before the negotiations can begin or proposal discussed with MMOPL.” a news agency quoted some source familiar with the matter.
Confirming the plan to take over the ownership of the Versova-Andheri-Ghatkopar Metro, MMRDA officials said there have been some discussions, but talks are at “an initial stage”.
Metro One carries ridership of around 4.5 lakh per day and has an average revenue of Rs 1 crore per day. But losses are weighing heavily on the operator, MMOPL.
MMOPL had said in a plea seeking a revision in fare that the increase was necessary to absorb the escalation in project costs. The company said it is “bleeding financially” and was suffering a loss of Rs 90 lakh every day of its operations. It is estimated the losses could be Rs 250-Rs 300 crores.