Mumbai’s first Metro in 2009: CM

Explaining the increase from a Rs 1,720 completion cost for the route that Mumbai Metropolitan Regional Development Authority’s (MMRDA) consultant, the Delhi Metro Rail Corporation (DMRC) had drawn up in June 2004, MMRDA Commissioner T Chandra Shekhar said: ‘‘In their estimates, DMRC had not incorporated certain aspects such as debt interest and design charges. Also, Reliance has promised better frequency

from 4 minutes to 3 minutes, which increases expenses on rolling stock.’’

Shekhar said the consortium reduced its original demand of state subsidy by almost 100 per cent—from Rs 1,251 crore to Rs 651 crore—since the state insisted that the consortium peg ‘‘its rate of return lower from 26 per cent to 15 per cent’’.

‘‘Reliance may not have prior experience in building a Metro, but they have highly experienced partners,’’ said Shekhar.

Reliance has joined hands with multi-national rail and road operator Connex and Hong Kong MRT.

The project is also the country’s first Metro to be built on a Build-Own-Operate-Transfer basis: the consortium will run it till 2039-40, before handing it over to the state.

The company, name still to be decided and to be formed in the coming weeks, will see the state holding 26 per cent equity and three of its officials on the Board of Directors.