March 13, 2024: The Maharashtra Cabinet on March 11 okayed the buyout of Anil Ambani’s company R-Infra’s 74% stake in Mumbai Metro Line 1 for Rs 4,000 crore. Johny Joseph, retired IAS officer and former chief secretary with the help of discounted cash flow model arrived to this valuation, which was approved by the state government, media reports mention.
Developed under the Build-Operate-Transfer (BOT) policy, Mumbai Metro 1 is run by a special purpose vehicle (SPV) – Mumbai Metro One Private Ltd (MMOPL). While the Mumbai Metropolitan Region Development Authority (MMRDA) has 26% stake in MMOPL, R-Infra has a stake of 74%. With this buyout, R-Infra will be able to exit out of this project and MMRDA will be the sole owner of the MMOPL.
The Mumbai Metro One was the first metro of Mumbai city. It runs from Ghatkopar to Versova and covers 11.4 km. Work on this project started in February 2008 and the line was open to public in June 2014. According to the MMOPL, the cost of construction of the Mumbai Metro One is Rs 4,026 crore. One of the busiest metro lines in the city, it sees a daily ridership of around 4.7 lakh commuters. The metro makes close to 408 trips on weekdays.
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