MMRDA forms expert panel to evaluate Mumbai Metro One's stake sale proposal

The Mumbai Metro One corridor stands out as a pioneering example of public-private partnership (PPP) implementation. MMRDA currently holds a 26% stake in the special purpose vehicle, Mumbai Metro One Private Limited (MMOPL), which operates Metro I, while the remaining 74% is owned by Rinfra, a company associated with Anil Ambani. Notably, the ISG was formed in April and comprises eminent figures such as former chief secretary Johny Joseph, additional chief secretary Bhushan Gagrani, and R Ramana, the executive director of Mumbai Metro Rail Corporation Ltd (MMRCL).

Sources have confirmed that the ISG's primary task is to comprehensively assess Reliance Infrastructure's representations. Their work will culminate in a report that addresses various aspects of the potential acquisition of Metro One by MMRDA. This encompasses a careful evaluation of representations, project valuation, and advisory recommendations related to the acquisition of Mumbai Metro, including insights from expert consultants.

In light of documents obtained through the Right to Information (RTI) channelled by Anil Galgali in January 2023, Reliance Infrastructure initially extended an offer in July 2020. Their proposal envisioned the comprehensive development of a depot at DN Nagar, owned by MMOPL in the suburbs, as well as the creation of 12 stations through real estate development. The proposal also highlighted the development potential based on the available Floor Space Index (FSI) as per the Development Control (DC) rules. Presently, an FSI of around 68 lakh square feet is available, with the current construction area spanning 5.06 lakh square feet and an expansive 85.81 lakh square feet earmarked for future development. As a result, the aggregate saleable area is projected at 91 lakh square feet, opening avenues for headquarters and government offices pertaining to all metro lines.

The inception of this remarkable project dates back to March 7, 2007, marked by a concession agreement between MMRDA and MMOPL. This pivotal collaboration materialized into a project valued at approximately Rs 2,356 crore, crafted under the principles of public-private partnership. Nevertheless, MMOPL has raised concerns regarding this figure, contending that the project cost has surged to Rs 4,321 crore—an argument bolstered during their past fare hike justification.

The progression of this process entails crucial stages. Following the ISG's submission of their comprehensive report, it will undergo initial scrutiny by MMRDA's executive committee, followed by endorsement from the authority itself. Ultimately, the ultimate decision rests with the state cabinet, signifying the culmination of this momentous journey.