Friday, July 24, 2015

RTI REVEALS - `R-Infra agreed to take Metro losses for 8 yrs' : The Times of India :The Times of India



R-Infra had projected and provisioned for losses in its business plan for the VersovaAndheri-Ghatkopar corridor till 2018 if operations began in 2010, said activist Anil Galgali, who had sought information on the project from MMRDA under the RTI Act. Galgali said after securing the bid for the project, the company was now complaining of losses.
However, R-Infra promoted Mumbai Metro One Private Ltd says the business plan it submitted then had been prepared without the viability gap funding (VGF), a one-time financial aid to make the project viable.

Galgali said, “Instead of sticking to its business plan, RInfra, right from day one had started cribbing about the losses. The state government along with R-Infra had finalised the fare pattern on September 3, 2013, and had approved the fares for Mumbai Metro till year 2044 45. It had allowed for stage-wise fare increases of 11% every 4 years, which was agreed upon by Reliance as well.“

Galgali said, “To secure the Mumbai Metro bid, R-Infra agreed to all terms and conditions. It is also understood that such projects need a long gestation period, which was reflected in its business plan of operating in loss for 8 years. R-Infra has now reversed its stand and taking the MMRDA, government and Mumbaikars for a ride.“

MMOPL said Galgali has issued a statement based on a partial document. Its spokesperson said, “The fare fixation committee has considered all aspects of cost to operate the lin. In our final financial bids to MMRDA at Rs 650 cr VGF , we had not envisaged any cash loss even in the first year of operation.

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