‘Have urged MMOPL to open line by year-end’

The Mumbai Metro One Pvt Ltd submitted a proposal to the Mumbai Metropolitan Region Development Authority seeking a hike in fare.

Published: September 4, 2013 12:27:15 am

The Mumbai Metro One Pvt Ltd (MMOPL) had first submitted a proposal to the Mumbai Metropolitan Region Development Authority (MMRDA) in February 2012 seeking a hike in fare. Why has the state government not intervened till now?

They had submitted the proposal to the MMRDA,but we had informed them that only the state government could take a decision and they should send it to them. The MMOPL submitted it to the state government only in March or April 2013. The state government is looking into it now. We have requested MMOPL to open the line for public use by year-end. We can look into the issues of cost escalation and the fare-hike proposal in the mean time.

What steps will the state government take with regard to the proposal?

Firstly,there is a legal issue involved about whether they are entitled to ask for a fare hike at this juncture. It will have to be seen if the concession agreement allows for it. If it is decided that it is the right time to ask for a hike in fare,then the second step will be to look into by how much the cost has to be increased and the reasons for it.

If there is an unexpected cost rise,is there a provision in the concession agreement to propose a fare rise?

The concession agreement states that there is a provision to seek a fare hike,if there is an unexpected increase in the operating cost. Since the Metro is not operational yet,it will have to be seen if it is possible to hike the fare.

What is your take on the concessionaire’s claim that most of the delay was because the right of way was handed over late?

It is factually incorrect to say that. We will have to look into the details of the delay in handing over the right of way.

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