MMOPL feels cost escalation in metro project
PORTS & SHIPPING

MMOPL feels cost escalation in metro project

Mumbai Metro One (MMOPL), which implements the Versova-Andher-Ghatkopar (VAG) metro line, feels that the cost of the project has risen to around Rs 3,893 crore from the earlier estimated Rs 2,356 crore because of inflation and higher material costs.

MMOPL, which is led by Reliance Infrastructure, plans to recover the rise of around Rs 1,500 crore in project cost by increasing Metro fares.

Going by the government agreement in 2005, Metro and monorail fares were to be 1.5 times the BEST bus fare of that year and the amounts were to increase 11 percent every fourth year.

Some experts feel that if the calculation, based on current BEST rates, was taken into account, the fare would be almost equal to Rs 24.

Some reports suggest that the government may set up an independent committee, led by a retired judge, to study the recommendation and suggest a way out. Ad rights and commercial exploitation of stations are some of the other ways to recover the money invested.

The present contract of the RInfra is for 35 years with first five years for construction and remaining 30 years for recovery of the cost.

However, as per the concession agreement between RInfra and MMRDA this recovery period can be extended by another 10 years if needed.

Mumbai Metro One (MMOPL), which implements the Versova-Andher-Ghatkopar (VAG) metro line, feels that the cost of the project has risen to around Rs 3,893 crore from the earlier estimated Rs 2,356 crore because of inflation and higher material costs. MMOPL, which is led by Reliance Infrastructure, plans to recover the rise of around Rs 1,500 crore in project cost by increasing Metro fares. Going by the government agreement in 2005, Metro and monorail fares were to be 1.5 times the BEST bus fare of that year and the amounts were to increase 11 percent every fourth year. Some experts feel that if the calculation, based on current BEST rates, was taken into account, the fare would be almost equal to Rs 24. Some reports suggest that the government may set up an independent committee, led by a retired judge, to study the recommendation and suggest a way out. Ad rights and commercial exploitation of stations are some of the other ways to recover the money invested. The present contract of the RInfra is for 35 years with first five years for construction and remaining 30 years for recovery of the cost. However, as per the concession agreement between RInfra and MMRDA this recovery period can be extended by another 10 years if needed.

Next Story
Infrastructure Transport

Dassault To Build Falcon Jets In India With Reliance

Reliance Infrastructure Ltd’s subsidiary, Reliance Aerostructure, has signed an agreement with France’s Dassault Aviation to manufacture Falcon 2000 business jets in India, with the first batch expected to roll out from its Nagpur facility by 2028. This marks the first time a Falcon aircraft will be entirely built outside France.The announcement sent Reliance Infrastructure shares surging, hitting the 5 per cent upper circuit on the BSE. Anil Ambani, Chairman of Reliance Group, hailed the agreement as a “symbol of India’s technological and manufacturing strength”, adding that it aims..

Next Story
Infrastructure Urban

INDEA Lays Foundation for India’s First Auto Design School

The Indian School for Design of Automobiles (INDEA), the country’s first institute focused solely on automobile design and management, held its foundation stone ceremony at XLRI Delhi-NCR. The event was graced by Union Minister for Road Transport and Highways, Nitin Gadkari, who virtually unveiled the stone as Chief Guest.INDEA aims to become a premier talent hub, driving innovation in the Indian automotive sector. The school will focus on advanced design, mobility solutions, and sustainable practices, playing a vital role in shaping India’s transition from a cost-driven to a quality-led a..

Next Story
Infrastructure Transport

Karnataka Launches Global Innovation Hub at Airport City

The Government of Karnataka, in collaboration with Bengaluru Airport City Limited (BACL) and ANSR, has launched a global innovation hub named District I at Bengaluru Airport City's business park. The initiative aims to elevate India’s innovation ecosystem to a global scale by fostering collaboration among startups, academia, enterprises, and government bodies.District I will serve as a platform for deep-tech entrepreneurship, enterprise innovation, and commercialisation of academic research. It brings together Global Capability Centres (GCCs), IT firms, corporate labs, startups, venture capi..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?