Maharashtra govt set to clear Reliance Infrastructure arm's Rs 1,700 cr metro debt
MMRDA to evaluate settling the Rs 1,700 crore debt owed by Mumbai Metro One Pvt Ltd (MMOPL) to its creditors through a one-time settlement.
Metro 1, the oldest in Mumbai which currently serves 4.6 lakh passengers daily, is the only corridor executed through a public-private partnership. It is run by a special purpose vehicle, the Reliance Infrastructure-promoted MMOPL. MMRDA has a 26 per cent stake in the SPV, while Anil Ambani's R-Infra holds 74 per cent.
There are six lenders in all: State Bank of India, IDBI Bank, Canara Bank, Indian Bank, Bank of Maharashtra, and IIFCL (UK).
In March 2024, MMOPL entered into a debt settlement agreement with its lenders, agreeing to pay Rs 1,700 crore to settle its entire debt. As part of this arrangement, MMRDA and MMOPL made an initial payment of Rs 171 crore to the lenders.
On March 11, the state cabinet had cleared purchase of R-Infra's 74% stake in Metro-1 for Rs 4,000 crore by MMRDA. The buyout would have allowed MMOPL to exit the project. However, MMRDA said it could not finance the acquisition and requested state funding, which was denied, leading the state cabinet to reverse its purchase decision recently.
Now, at a June 26 cabinet meeting, sources said, it was decided to ask MMRDA's executive committee «to discuss the issue of the one-time settlement.» MMRDA was directed to take immediate action for implementation of the cabinet move, sources added.
The MMRDA commissioner plans to organize a meeting with all six lenders of MMOPL to discuss the issue. From April
