Anil Ambani’s Reliance Infrastructure Set To Exit Mumbai Metro-1, To Get Rs 4000 Cr
Reliance Infrastructure, led by Anil Ambani, is set to divest its stake in Mumbai Metro-1, with the Maharashtra Cabinet granting approval for the sale. The company, holding a 74 per cent stake in the project, is set to fetch a staggering Rs 4,000 crore from the transaction.
According to Aseem Kumar Gupta, Maharashtra’s urban development secretary, the purchase of R-Infra's stake by the Mumbai Metropolitan Region Development Authority (MMRDA) has received the green light to ensure continuity in the crucial public transport system.
As per reports, the decision comes four years after Reliance Infrastructure expressed its intent to exit the project, citing pandemic-induced losses. The approval from the Maharashtra Cabinet marks a significant milestone in the ongoing negotiations between the company and the government.
Metro-1, stretching 11.4 km between Versova-Andheri-Ghatkopar, serves as a vital link connecting the eastern and western suburbs to the Western and Central railways. Implemented through a public-private partnership, it stands as the oldest line in Mumbai's extensive Metro network.
Operated by the Mumbai Metro One (MMOPL), a special purpose vehicle (SPV), Metro-1 holds strategic importance in Mumbai's transportation infrastructure. With MMRDA acquiring Reliance Infrastructure's stake, the authority will assume complete ownership of MMOPL.
The Mumbai Metro network, with MMRDA as its nodal agency, aims to expand to 337 km across the metropolitan region. The approval for Reliance Infrastructure's stake sale underscores the government's commitment to bolstering the city's public transport infrastructure amid evolving challenges and opportunities.
Reliance Infrastructure's decision to exit the project reflects the company's strategic realignment amidst changing market dynamics. As negotiations progress, stakeholders are optimistic about the seamless transition and the continued enhancement of Mumbai's Metro network.
