Hurdle cleared for Mumbai Metro 1 transfer?

Paving the way for the much-awaited takeover of Mumbai Metro Blue Line 1, the state cabinet has directed the Mumbai Metropolitan Region Development Authority (MMRDA) to settle Metro One debt through a one-time settlement with six public sector undertaking lenders.

The trial run of a Metro train on May 1, 2013. Pic/Nimesh Dave

Highly placed sources said the Maharashtra cabinet, in a meeting held on June 26 in Mumbai, directed the executive committee of MMRDA to pursue a one-time settlement of the debt owed by Mumbai Metro One Pvt Ltd (MMOPL), with the lenders. "In March 2024, the MMOPL signed a debt settlement agreement with lenders, committing to pay R1,700 crore as a one-time settlement of its entire debt. As part of this, MMRDA and MMOPL had made an upfront payment of R171 crore to lenders," the source said.

"The cabinet has instructed the MMRDA to take immediate action for the implementation of its decision. The MMRDA will soon convene a meeting of all six lenders - the State Bank of India, IDBI Bank, Canara Bank, Indian Bank, Bank of Maharashtra and Indian Infrastructure Finance Company Limited (UK) - to deliberate on the one-time settlement of the debt. Between April 2023 and June 2024, MMOPL paid interest regularly to the lenders, amounting to over R225 crore," he said. When contacted, the MMOPL spokesperson declined to comment.

June 26
Day meeting was held