The Maharashtra government has turned down the Anil Dhirubhai Ambani Group’s (ADAG) proposal on passenger fare hike in the 12-km long Mumbai’s first metro line, which connects Versova in Western suburbs to Ghatkopar in Eastern suburbs.
The project is scheduled to be inaugurated by the Chief Minister of Maharashtra Prithviraj Chavan on Sunday afternoon.
Today afternoon Chavan, while addressing the media at Maharashtra Legislative Assembly said that in 2006, when the tender was awarded to Reliance group the fare was fixed at Rs 9 for 3 km, Rs 11 for 3-8 km and Rs 13 for journey more than 8 km. This fare structure was one of the main conditions on which the tender was awarded to group,
Now the group wants the passenger fare to be between Rs 10 and Rs 40, citing increase in the cost of the project from Rs 2,356 crore to Rs 4,321 crore, he said.
If the group wants higher fare due to delay on implementing the project then it should get the clearance from the Tariff Fixation Committee, which led by a retired High Court judge, Chavan said.
Chavan added that if the group sticks to the old rates then he will inaugurate the project otherwise he will remain absent.
Litigation is also in store as the Mumbai Metropolitan Region Development Authority (MMRDA), which is the chief project proponent, has approached the Bombay High Court against the fare hike. MMRDA holds 26 per cent stake in the project.
A Special Purpose Vehicle (SPV) called Mumbai Metro One Private Ltd (MMOPL) has been created to develop, implement and operate the metro line. The MMOPL is a consortium formed by Reliance Infrastructure Ltd, MMRDA and Veolia Transport SA of France with 69 per cent, 26 per cent and 5 per cent stakes respectively. The project is based on a public-private partnership model.
The group in a press statement has said that the line will open on Sunday. A concessional and promotional fare of Rs 10 only will be charged for the first 30 days, irrespective of the distance travelled between Versova-Ghatkopar line for a one-way trip.
But it has also said this promotional fare notwithstanding the initial fare was fixed and notified separately on initial opening of the metro railway under Central Metro Act.