Reliance Energy -- part of the Anil Dhirubhai Ambani Group -- has bagged the contract for developing Line I of Phase I of the Mumbai Metro Rail Project.

Maharashtra Chief Minister, Mr Vilasrao Deshmukh, made the official announcement on 18 May 2006. The project was allotted to REL after it drastically cut down the viability gap funding from the earlier Rs.1,251 crore to Rs.650 crore. In the process, REL got the better of the IL&FS-led consortium whose viability gap funding estimate was very close to REL's original figure.

Line I will be an entirely elevated 15 km section between Versova and Ghatkopar, via Andheri. The cost of Line I is estimated at Rs.2,356 crore.

A special purpose vehicle will be formed to implement the project in which REL will hold 74 per cent equity stake with Maharashtra government agencies (mainly MMRDA - the nodal agency) will hold 26 per cent. The SPV will develop the project on BOOT basis with a concession period of 30 years after which it will be transferred to the Maharashtra government.

Work on the project will begin by end-June 2006 with an envisaged completion of three years.

Also See:
Reliance bags Mumbai metro? (12-May-06)

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