After three months, the government reverses course and buys out R-Infra’s Metro-1 stake

MUMBAI: Three months after sanctioning it, the state government has changed its mind about acquiring the Versova-Andheri-Ghatkopar Metro-1. During a Tuesday cabinet meeting, the decision was made. The city’s oldest route, Metro-1, is the only one developed under a public-private partnership. Mumbai Metro One Private Ltd (MMOPL), a special purpose vehicle (SPV), is in charge of it.

Reliance Infrastructure (R-Infra), owned by Anil Ambani, holds a 74% ownership in the SPV, with MMRDA holding a 26% share. The purchase of R-Infra’s 74% share in Metro-1 by the Mumbai Metropolitan Region Development Authority (MMRDA) for Rs 4,000 crore was approved by the state cabinet on March 11. MMRDA did, however, state that it was unable to finance the purchase. The state cabinet canceled the acquisition proposal when the request for funds from the state government was turned down.

Source – Times of India


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