MMRDA appoints guide for taking on of Mumbai Metro Line 1

Mumbai, India (City Transport Information): The Mumbai Metropolitan Area Improvement Authority (MMRDA) is planning to take over the operation and upkeep of Mumbai Metro’s Line 1 (Versova-Andheri-Ghatkopar) earlier than launching essentially the most awaited Line 2A & 7. On this regard, the chief committee of the MMRDA has not too long ago accredited the appointment of a guide to hold out due diligence of property of Mumbai Metro Line 1 earlier than a proper takeover.

Sources stated that final 12 months, Reliance Infrastructure Restricted (R-Infra) had written to the Maharashtra authorities asking to purchase its stake in Mumbai Metro One Non-public Ltd (MMOPL), which runs the 11.5-km Line 1. That is the primary Metro line in Mumbai, which was constructed on a public-private partnership (PPP) mannequin and was commissioned in 2014. Reliance Infrastructure holds 69% of the fairness share capital of MMOPL, whereas MMRDA holds 26% and the remaining 5% is held by RATPDev Transdev Asia.

“Since MMRDA is establishing all Metro traces throughout the area, the acquisition will add synergy to the operation of different traces. Additionally since it’s a public transport infrastructure and MMOPL is unable to run it, it’s incumbent upon the federal government to take over,” stated RA Rajeev, Metropolitan Commissioner, MMRDA including the authority had the primary proper to purchase R-Infra’s stake.

R-Infra has evaluated its share worth between Rs 2,500-2,600 crore for its share in MMOPL. The guide will go to all of the property created by MMOPL, assess their worth and evaluate in opposition to their ebook worth, which is able to allow MMRDA to resolve on the quantity to be paid to R-Infra. The guide will submit their report within the subsequent 4 months.

“The fare construction has been a supply of friction between MMRDA and MMOPL, with the latter asking for a fare hike citing a rise of Rs 1,935 crore in undertaking value over the unique value of Rs 2,356 crore. MMOPL had additionally cited a day by day lack of Rs 90 lakh in operations,” sources stated.

As soon as the formality accomplished, the Mumbai Metro Line 1 will probably be handed over to Maha Mumbai Metro Operation Company Restricted, a particular goal car shaped by MMRDA to function and preserve all future traces of the Mumbai Metro Rail undertaking within the Mumbai Metropolitan Area.

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