The Maharashtra government in a cabinet meeting held on June 26, 2024 has reversed its own decision to buy out the Reliance Infrastructure (R-Infra)’s 74 per cent stake in Mumbai Metro One. The decision comes just four months after the state government had given a go ahead to the proposal on March 15, 2024.
The Mumbai Metropolitan Region Development Authority (MMRDA) was to acquire R-Infra’s stake for close to Rs 4,000 crore in the special purpose vehicle, Mumbai Metro One Pvt Ltd (MMOPL). MMOPL owns the 11.4 km metro line on the Versova-Andheri-Ghatkopar route, and the balance is held by MMRDA.
For this, a due diligence report dated April 26, 2024 was prepared by Maha Mumbai Metro Operation Corporation Ltd (MMMOCL), a copy of which is attached as Annexure-1.
Further, legal due diligence report was prepared by DSK Legal as per the mandate of MMRDA. A draft report dated May 27, 2024 is attached as Annexure-2.
On the instructions of MMRDA, BDO prepared a draft financial due diligence report dated June 24, 2024 and the same is attached as Annexure-3.
MMOPL has been serving the Mumbaikars for the past 10 years, and it is still left with over 20 years of operations as per the Concession Agreement.
