MMRDA Explores One-Time Debt Settlement for Mumbai Metro Line 1

The Eknath Shinde government has postponed its plans to purchase Mumbai Metro Line 1. Instead, the State Cabinet has instructed the executive committee of the Mumbai Metropolitan Region Development Authority (MMRDA) to consider a one-time settlement of the Rs 1,700 crore debt owed by Mumbai Metro One Pvt Ltd (MMOPL).

Mumbai Metro Line 1, the city’s oldest metro line, serves 4.6 lakh passengers daily and is the only line constructed through a public-private partnership. It is operated by MMOPL, a special purpose vehicle promoted by Reliance Infrastructure, with MMRDA holding a 26% stake and Anil Ambani’s Reliance Infrastructure (R-Infra) holding 74%.

Six banks are involved in the debt: State Bank of India, IDBI Bank, Canara Bank, Indian Bank, Bank of Maharashtra, and IIFCL (UK). In March 2024, MMOPL agreed to a debt settlement with these lenders, agreeing to pay Rs 1,700 crore. MMRDA and MMOPL made an initial payment of INR 171 crore.

Source: Prop News Times

 

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