Reliance Infrastructure may pull out of Mumbai Metro

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By Rakesh Ranjan http://indiatoday.intoday.in/

Sources said Reliance infrastructure has told Maharashtra government to increase Metro fares in order to contain losses

Anil Ambani’s Reliance Infrastructure has threatened to pull out from operating the Mumbai Metro. Citing financial inviability, the Mumbai Metro One Pvt Ltd (MMOPL) has told the Maharashtra government that it would be difficult to continue the operation in case it failed to generate adequate revenue.

In a letter to Maharashtra chief secretary, MMOPL has demanded a minimum operational subsidy of Rs 21.75 crore per month besides the one-time capital grant of Rs 1,000 crore to continue operating the 11.4 km Versova-Andheri-Ghatkopar (VAG) corridor. The operator has asked the government to decide on the demand by October 31 this year.

The private concessionaire has told the Maharashtra government in clear terms that no hike in Metro fares could contain the financial losses and only financial assistance from the government could ensure smooth operation of the Metro services. More info

 

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