The Eknath Shinde led Maharashtra government has decided not to acquire the Mumbai Metro Line 1, the city’s oldest metro line. However, the state cabinet has directed the MMRDA’s executive committee to evaluate a one-time settlement of Rs 1,700 crore in debt owed by Mumbai Metro One Private Limited (MMOPL). 

Metro Line 1 is Mumbai’s only metro line built through a public-private partnership. MMOPL, the special purpose vehicle created for this project, has MMRDA holding 26% and Reliance Infrastructure holding 74% of the shares. Approximately 4.6 lakh passengers use this corridor daily.

This has caused Reliance Infra’s share price to jump by nearly 10%, reaching Rs 206.65 on the BSE despite a general market decline, according to Navbharat Times. MMOPL has debts owed to six banks: State Bank of India, IDBI Bank, Canara Bank, Indian Bank, Bank of Maharashtra, and IIFCL (UK). 

In March 2024, MMOPL agreed with its creditors to settle its debt for Rs 1,700 crore. Under this agreement, MMRDA and MMOPL made an initial payment of Rs 171 crore to the lenders. On June 26, the cabinet decided to ask MMRDA’s executive committee to discuss the one-time settlement issue.

It is worth noting that on March 11, the state cabinet had approved the purchase of Reliance Infra’s 74% stake in Metro-1 for Rs 4,000 crore by MMRDA. However, MMRDA stated it lacked the funds for this and requested financial support from the state government, which was denied. The state cabinet recently reversed its purchase decision, according to the report.