Maharashtra Government and Reliance Infra signed Concession Agreement for Metro Line-II

Project Cost of Rs. 8,250 crores
Financial closure to be achieved before October, 2010
To execute 32 km Charkhop-Bandra-Mankhurd corridor with 27 stations
Well integrated with existing suburban railway network and Metro Line I
Mumbai, January 21, 2010 – The Govt. of Maharashtra signed the Concession Agreement with Reliance Infrastructure Limited (RInfra) led consortium today for the second line of Mumbai Metro Rail Project on BOT/PPP basis, for a concession period of 35 years.
RInfra, part of the Reliance Anil Dhirubhai Ambani Group, would be executing this project in a consortium comprising Reliance Communication and SNC Lavalin Inc, Canada. The project has been awarded by the Government of Maharashtra for undertaking the development of Mumbai Metro line-II, following an international competitive bidding process under PPP framework.
The total estimated cost of the project is Rs 8,250 crores out of which Rs. 2298 crores will be provided by the Government as Grant. The Government of India has approved the project cost as rupees 7660 crores.
“This is a very crucial step as far as Mumbai is concerned”, said Mr.Ashok Chavan, Honourable Chief Minister of Maharashtra. “More relevantly, Mumbai being the most public transport dependent cities in the world the Metro and Mono Rails will encourage car owners to use public transport as both Metro and Mono offer air-conditioned comfort, reduces travel time, saves fuel and, of course, they are environment friendly”, said the Chief Minister.
Mr.Bhaskar Jadhav, the State Minister for Urban Development department, said, “I am indeed very happy for my Mumbaikars. It is they who keep this vibrant city alive. And projects such as Metro and Mono Rail are to make their commute comfortable and safe”.
“The second Metro line will provide the much required North-South and East-West connectivity reducing the burden of the local trains to a great extent. More importantly, we are also establishing the National Research and Training Institute in collaboration with the Federal Transit Administration, USA. The institute will provide a lot of input as far as the security systems and public transport integration is concerned for modern transport such as Metro and Mono Rails”, said Mr.Ratnakar Gaikwad, Metropolitan Commissioner, MMRDA.
“The State Government is committed to developing Metro and Mono Rail network in the city and its metropolitan region”, said Mr.T.C.Benjamin, Principal Secretary, Urban Development Department, Government of Maharashtra. “And signing of this concession agreement for the Charkop-Bandra-Mankhurd corridor Metro Rail is an important step towards the goal. I am sure, the Mumbaikars will support us in the construction of this second line of Metro Rail as they have been backing the construction of the first Metro Rail line from Versova-Andheri-Ghatkopar”, concluded Mr.Benjamin.
Speaking at the event, Mr. Lalit Jalan, CEO & Whole-time Director, Reliance Infrastructure Limited said, “We are happy to sign the concession agreement of Mumbai Metro-II today and confident of achieving the financial closure before October 2010. We are honoured to say that RInfra is the only private sector player in the country that is developing three metro projects totaling more than Rs. 16,000 crores.”
Outlining the future opportunities in metro rail sector in the country, Mr. Jalan said, “Every major city in the country is planning to have a metro rail. So beside the big cities like Mumbai, Delhi, Hyderabad and Jaipur, we would also be exploring opportunities in smaller cities like Pune, Chandigarh, Ahmedabad etc.”
The 32 km Charkop-Bandra-Mankhurd corridor project will provide a vital link between Navi Mumbai and the western suburbs, connecting Charkop in the north to Bandra and then to Mankhurd in the east. It will be a fully elevated metro project with 27 stations along the route.
Mr. K P Maheshwari, Sr. Ex. Vice President, Reliance Infrastructure Limited, highlighted, “We have already completed the alignment survey along the corridor. Once both Versova-Andheri-Ghatkopar and Charkop-Bandra-Mankhurd corridors are completed, they would serve areas that are not connected by existing Suburban Rail System and would provide much needed comfort and convenience to the 16 lakh commuters, who would be taking the Metros daily.”
The company had earlier been awarded the Mumbai Metro-I (Versova-Andheri-Ghatkopar corridor) and Delhi Airport Express Line projects.
With two metro projects in Mumbai, RInfra would be committing almost Rs.10,500 crores for the Mumbai Metro sector only. This would lead to significant decongestion of urban transport system in Mumbai and would provide safe, clean and convenient mode of traveling to daily commuters.
RInfra’s Mumbai Metro-I project would be completed by 2010, which is ahead of schedule by almost 15 months. The Delhi Airport Express Line project is also targeted to be commissioned before the Commonwealth Games.
While addressing media persons, the Hon’ble Chief Minister said –

Ø Our effort will be to complete the Charkop-Bandra-Mankhurd corridor by 2013
Ø Yes, some inconvenience will be caused to residence of area, pedestrians, traffic etc. when projects of such magnitude are undertaken. However, we will make sure that the problems are kept at the minimum
Ø Responding to a reference to MCGM deciding to work 24 hours – We have been undertaking many a task during night, but, of course, keeping in mind the convenience of the residents of the area
Ø Yes, a few mishaps have taken place at Metro sites. But, we are learning from the mistakes. And we will make sure, there is no room for any more mistakes
Ø The work on Versova-Andheri-Ghatkopar corridor is ahead of schedule by 15 months and the route will be commissioned by the end of this year and you all will be able to travel by the Metro then
Ø Mr.Satish Seth, VC, Reliance, praised the working of Metropolitan Commissioner and his team. Referring to this, CM quipped, “All the praise is in the right place. But, you forgot to praise me! I am the Chairman of MMRDA !!” (Ends)
About Reliance Infrastructure Limited
Reliance Infrastructure Limited is part of the Reliance Anil Dhirubhai Ambani Group. The group currently has a market capitalization of around Rs 1,65,000 crores (US$ 35.1 Bn), net worth in excess of Rs 64,000 crores (US$ 13.6 Bn), operating cash flow of Rs 13,000 crores (US$ 2.8 Bn) and net profit of around Rs 8,400 crores (US$ 1.8 Bn) and zero net debt.