MMRDA-Reliance Infra joint venture sale: Former Maharashtra chief minister Prithviraj Chavan criticized the decision, citing the hefty acquisition cost. Anil Ambani owns 74% of Mumbai Metro One Pvt Ltd (MMOPL), with MMRDA holding the remaining 26%. The panel, led by retired IAS official and former chief secretary Johny Joseph, reportedly utilized the discounted cash flow approach to value Anil Ambani’s 74% shareholding in MMOPL at Rs 4,000 crore. The report has been authorized by the state cabinet.
The Maharashtra Cabinet, led by Eknath Shinde, has given its in-principle approval for the acquisition of Mumbai Metro One, a public-private partnership project owned by Anil Ambani’s Reliance Infrastructure Limited (R-Infra) and the Mumbai Metropolitan Region Development Authority. The Hindustan Times reported that Ambani’s 74% share in the firm is worth at ₹4,000 crore.
Mumbai Metro One, the city’s first metro project built under the Build-Operate-Transfer (BOT) model in 2007, has been the subject of disagreements among the joint venture partners. According to the study, MMRDA owns a 26% of Mumbai Metro One Pvt. Ltd. (MMOPL), while R-Infra owns the bulk (74%).
On Monday, the state cabinet approved a report by retired IAS officer and former chief secretary Johnny Joseph that valued his R-infra holdings at ₹4,000 crore. According to official sources, a commission headed by Joseph had ordered that H.T.
The MMRDA-Reliance Infra joint venture has been dogged by disagreements over project costs, commercial use of services in metro areas, ticketing system, and MMOPL’s demand for higher prices Despite being the most crowded metro so far, the MMOPL has claimed continuing losses, but the MMRDA has disputed the claims of these
MMOPL claimed a construction cost of ₹4,026 crores, which was rejected by MMRDA citing the actual cost of ₹2,356 crore. Further, the Greater Mumbai Municipal Corporation requested MMOPL to pay property tax. According to the report, MMOPL has written to the state government and MMRDA in 2020 to buy their shares due to losses incurred during the COVID-19 pandemic.
Former Chief Minister Prithviraj Chavan opposed the decision. “There was disagreement over the acquisition price. The government has received financial and legal advice that the valuation is too expensive. However, this government is backing Anil Ambani’s team,” Chavan was quoted as saying in the statement.
