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

11 Mar 2024 CW Team

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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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.

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..