In a significant development, the Mumbai Metropolitan Region Development Authority (MMRDA) has been directed to cancel the acquisition of Mumbai Metro Line 1. This decision, influenced by the intervention of Prime Minister Narendra Modi, aims to prevent a substantial financial loss of approximately INR 650 crore.
The MMRDA had initiated the process of acquiring the loss-making Metro 1 line from Mumbai Metro One Private Limited (MMOPL). However, concerns over the financial implications and technical complexities associated with the acquisition led to a reevaluation of the decision. Prime Minister Modi’s intervention proved decisive in halting the acquisition process. Recognizing the potential financial burden on the MMRDA, the Prime Minister instructed the Maharashtra government to reconsider the decision. The state government subsequently canceled the acquisition plan, averting a significant loss to the public exchequer.
The Metro 1 line, which connects Ghatkopar to Versova, has been operational since 2014 but has consistently incurred financial losses. MMOPL, the original developer and operator, sought to divest its stake in the project. The MMRDA’s 26% stake in the line would have made it a significant shareholder, but the financial implications of acquiring the entire line proved to be too costly. The cancellation of the acquisition highlights the government’s increasing focus on fiscal discipline and efficient allocation of resources. By avoiding a loss-making venture, the MMRDA can prioritize other critical infrastructure projects that can benefit the city of Mumbai and its residents.
