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.