Mumbai Metro One: MMRDA Sets Up Committee to Evaluate RInfra’s Stake Sale Proposal

MUMBAI (Metro Rail News): The MMRDA (Mumbai Metropolitan Region Development Authority) has set up an internal study group (ISG) to help review a proposal from Reliance Infrastructure Ltd. The proposal entails the sale of Reliance Infrastructure’s stake in the Mumbai Metro One corridor, that links Versova, Andheri, and Ghatkopar.

Metro One is unique as it’s the only corridor developed through a public-private partnership (PPP). Currently, MMRDA has a 26% stake in Mumbai Metro One Private Limited (MMOPL), the special-purpose vehicle that operates Metro I. The remaining 74% is owned by Rinfra, a company owned by Anil Ambani. The ISG, formed in April, comprises former chief secretary Johny Joseph, additional chief secretary Bhushan Gagrani, and executive director of Mumbai Metro Rail Corporation Ltd (MMRCL) R Ramana.

The ISG’s task is to study Reliance Infrastructure’s representations and prepare a report on MMRDA’s potential acquisition of Metro One. This report will cover various aspects, including the project’s valuation and advice on the acquisition, including its enterprise value.
According to the document obtained under Right to Information (RTI) by Anil Galgali in January 2023, Reliance Infrastructure had offered this proposal in July 2020. Their proposal suggests that MMRDA could develop a depot at DN Nagar in the suburbs and create 12 stations through real estate ventures.

The document states that under the current Development Control (DC) rules, there’s Floor Space Index (FSI) available for development, amounting to around 68 lakh square feet. Currently, the construction area is 5.06 lakh square feet, and the available development area is 85.81 lakh square feet. This totals 91 lakh square feet of saleable area, which could be utilized for headquarters and government offices for all metro lines.

The original agreement between MMOPL and MMRDA was signed on March 7, 2007. The entire project, developed through the PPP model, was initially estimated to cost Rs 2,356 crore. However, MMOPL has disputed this cost and claimed that it escalated to Rs 4,321 crore, justifying their fare hike in the past.

Once the ISG presents its report, it will need the green light from both MMRDA’s executive committee and its authority. The final call will be made by the state cabinet.