FCC

MMRDA panel assess Reliance Infra's Mumbai Metro Stake Sale Proposal

2023-08-11

The Mumbai Metropolitan Region Development Authority (MMRDA) has established an internal study group (ISG) tasked with aiding the organisation in evaluating a proposal put forth by Reliance Infrastructure. This proposal pertains to the sale of Reliance Infrastructure's ownership stake in the Mumbai Metro One (Versova-Andheri-Ghatkopar) corridor.

Notably, the Mumbai Metro One corridor stands as the sole project developed through a public-private partnership (PPP) arrangement. Within the special purpose vehicle Mumbai Metro One Private (MMOPL), which operates Metro I, MMRDA possesses a 26 per cent stake, while Rinfra, under the ownership of Anil Ambani, holds a 74 per cent stake.

The ISG, assembled in April, is composed of esteemed individuals including former chief secretary Johny Joseph, additional chief secretary Bhushan Gagrani, and R Ramana, executive director of Mumbai Metro Rail Corporation (MMRCL).

Sources reveal that the committee's primary task is to thoroughly examine the submissions made by Reliance Infrastructure and subsequently generate a comprehensive report concerning MMRDA's potential acquisition of Metro One. The report will encompass multiple facets, including the representations presented, project valuation, and counsel on the acquisition of Mumbai Metro. This counsel will encompass the enterprise value of the endeavour as evaluated by an expert consultant.

Information obtained through a Right to Information (RTI) request by Anil Galgali in January 2023 unveils that Reliance Infrastructure submitted an offer in July 2020. In this communication, it was suggested that MMRDA fully develop a depot located at DN Nagar in the suburbs and additionally oversee the development of 12 stations through real estate ventures.

The communication outlines the existing scenario in terms of Floor Space Index (FSI) based on Development Control (DC) regulations. Currently, the available FSI is approximately 68 lakh square feet, while the on-going construction occupies 5.06 lakh square feet. This leaves a development area of 85.81 lakh square feet, resulting in a total saleable area of 91 lakh square feet. This expansive area could be utilised to accommodate the headquarters and government offices of all metro lines.