Reliance Infrastructure plans to sell stakes in Mumbai Metro-1, writes to Maharashtra govt

Amid losses, the Reliance Infrastructure (RInfra)-led Mumbai Metro One Pvt Ltd (MMOPL) is planning to sell the stakes it owns in the company.

According to a report by Hindustan Times, RInfra-led MMOPL has written to the Maharashtra government, saying that it wants to sell the stakes it owns in the company. Metro-1 has been shut for five months owing to coronavirus lockdown and had been suffering losses prior to lockdown. Meanwhile, the state has sought MMRDA’s views on the development.

Reliance Infrastructure owns 69% stake in MMOPL, while the Mumbai Metropolitan Region Development Authority’s (MMRDA) owns 26% and Transdev (formerly Veolia Transport) owns 5%.

MMOPL is a special purpose vehicle (SPV) that was constituted to develop and run Metro-1. MMOPL operates and maintains Versova-Andheri-Ghatkopar metro line in Mumbai, the only Public-Private Partnership metro corridor in Maharashtra.

Reliance Infrastructure (RInfra) on June 30 reported a consolidated net loss of Rs 288.41 crore for the quarter ended June 30. The company had clocked a consolidated net profit of Rs 299 crore in the corresponding quarter of the previous fiscal, the company said in a statement.

Its total consolidated income during the quarter under review declined to Rs 4,453 crore as against Rs 6,080 crore in the corresponding quarter a year ago. The company said it has assets of over Rs 66,800 crore and net worth of Rs 9,500 crore.

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