Mumbai Metro: R-Infra, govt set for a showdown

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By Sanjay JogKrishna Kant |  Mumbai http://www.business-standard.com/

With the Anil Ambani group firm, Reliance Infrastructure seeking a Rs 1,000 crore government bailout for operating Mumbai Metro services to recover its costs, the experience of private sector companies in providing Metro services is fast turning out to be a nightmare and brings to the sharp focus the differences between the government and private sector players over capital costs and cost overrun.

This is the second time Reliance Infrastructure is taking on the government over a metro project. Earlier, Reliance Infrastructure had withdrawn from Delhi Airport Express metro line citing financial unviability.

The other private player is also facing the heat in setting up a metro. Construction and engineering giant, L&T — which is constructing Hyderabad metro project — is facing huge cost overrun over land acquisition. More info

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