Mumbai: The Maharashtra government has once again initiated the process to ascertain valuation of India’s first Public Private Partnership (PPP) metro rail project – the Versova – Andheri – Ghatkopar metro corridor to acquire the mass rapid transit system from Reliance Infrastructure (RInfra) led Mumbai Metro One Private Limited (MMOPL).
The future and operations of Mumbai Metro 1 has come under spotlight, especially after India’s largest bank – State Bank of India moving National Company Law Tribunal (NCLT) against MMOPL to recover Rs 416 crore.
Committee Appointment and Objectives
In April, a three member committee was appointed with a four point agenda. They being to study various representations of RInfra, to prepare report on acquisition of Metro 1 by Mumbai Metropolitan Region Development Authority (MMRDA) including valuation of the entire system, advise on acquisition by assessing MMOPL’s enterprise value and other considerations, and lastly any other point relevant to the study.
There is no specific duration that the committee has been assigned to put up their report, shared an official on anonymity. Whenever the committee report is ready, it will be tabled in front of MMRDA’s Executive Committee, followed by its Authority headed by the Chief Minister and then the state cabinet.
Arbitration Tribunal and Equity Structure
Alongside, for the last few years, the Arbitration Tribunal has been hearing the dispute between MMOPL and MMRDA. The special purpose vehicle has RInfra’s 74% equity and the balance by MMRDA.
A detailed questionnaire sent to MMOPL did not elicit a response.
While this entire process may take some months to go through. Should a situation arise if MMOPL decides not to service the metro system, Maha Mumbai Metro Operation Corporation Limited (MMMOCL) will take over the operations & maintenance of the 11.4 km line having the crucial East-West connectivity.
Already, MMMOCL is running the show for Mumbai Metro 2A (Dahisar East to Andheri West) and 7 (Dahisar East to Gundavali) lines.
Back in 2020, owing to losses it has been incurring, MMOPL in a communication had asked the government to acquire the project from them.
