+
Panel appraises R-Infra's 74% Metro-1 stake at Rs 40 billion
RAILWAYS & METRO RAIL

Panel appraises R-Infra's 74% Metro-1 stake at Rs 40 billion

An internal study group, led by former chief secretary Johny Joseph, has reportedly assessed the value of the 74% stake owned by Reliance Infrastructure (R-Infra) in the Metro-1 corridor at Rs 40 billion. The study group has presented its valuation report to the Mumbai Metropolitan Region Development Authority (MMRDA). The decision on whether MMRDA will acquire R-Infra's stake needs to be presented before the Maharashtra cabinet. The acquisition process has been prolonged for years, with disagreements persisting between the government and the company regarding the valuation.

The Metro-1 line, spanning 11.4 km and connecting Versova-Andheri-Ghatkopar, facilitates connectivity between the Eastern and Western suburbs to the Western and Central railway. Executed through a public-private partnership, it is managed by a special purpose vehicle (SPV) called Mumbai Metro One (MMOPL). MMRDA holds a 26% stake in the SPV, while Anil Ambani's R-Infra holds the remaining 74%.

Sources reveal that the study group utilized the discounted cash flow model and considered the report from the financial advisory firm, KROLL, to arrive at the valuation. The concession agreement between MMRDA and MMOPL was signed in 2007. However, negotiations regarding R-Infra's stake sale in MMOPL, initiated in 2020 due to pandemic-induced losses, have made little progress since then.

MMRDA, responsible for implementing the 337-km Metro network in the Mumbai Metropolitan Region, oversees the Metro-1 project, which has incurred losses since its operational commencement in 2014. Despite being the oldest line in the city, MMOPL faced challenges in raising fares. In 2019, the second fare fixation committee rejected MMOPL's proposal to increase fares and suggested exploring non-fare revenue generation. Additionally, MMOPL is engaged in arbitration concerning cost escalation during the Metro-1 construction. While MMOPL claims a construction cost of Rs 40.26 billion, MMRDA asserts the original contract's cost as Rs 23.56 billion. The ridership on Metro-1 has consistently remained high, except during the Covid-related shutdown, carrying 4.6 lakh commuters on weekdays with 408 daily trips.

An internal study group, led by former chief secretary Johny Joseph, has reportedly assessed the value of the 74% stake owned by Reliance Infrastructure (R-Infra) in the Metro-1 corridor at Rs 40 billion. The study group has presented its valuation report to the Mumbai Metropolitan Region Development Authority (MMRDA). The decision on whether MMRDA will acquire R-Infra's stake needs to be presented before the Maharashtra cabinet. The acquisition process has been prolonged for years, with disagreements persisting between the government and the company regarding the valuation. The Metro-1 line, spanning 11.4 km and connecting Versova-Andheri-Ghatkopar, facilitates connectivity between the Eastern and Western suburbs to the Western and Central railway. Executed through a public-private partnership, it is managed by a special purpose vehicle (SPV) called Mumbai Metro One (MMOPL). MMRDA holds a 26% stake in the SPV, while Anil Ambani's R-Infra holds the remaining 74%. Sources reveal that the study group utilized the discounted cash flow model and considered the report from the financial advisory firm, KROLL, to arrive at the valuation. The concession agreement between MMRDA and MMOPL was signed in 2007. However, negotiations regarding R-Infra's stake sale in MMOPL, initiated in 2020 due to pandemic-induced losses, have made little progress since then. MMRDA, responsible for implementing the 337-km Metro network in the Mumbai Metropolitan Region, oversees the Metro-1 project, which has incurred losses since its operational commencement in 2014. Despite being the oldest line in the city, MMOPL faced challenges in raising fares. In 2019, the second fare fixation committee rejected MMOPL's proposal to increase fares and suggested exploring non-fare revenue generation. Additionally, MMOPL is engaged in arbitration concerning cost escalation during the Metro-1 construction. While MMOPL claims a construction cost of Rs 40.26 billion, MMRDA asserts the original contract's cost as Rs 23.56 billion. The ridership on Metro-1 has consistently remained high, except during the Covid-related shutdown, carrying 4.6 lakh commuters on weekdays with 408 daily trips.

Next Story
Real Estate

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Next Story
Real Estate

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

Next Story
Real Estate

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?