 "Mumbai metro rail: Operator firm open to audit")
Reliance Infrastructure arm Mumbai Metro One Pvt Ltd (MMOPL) has said it was open to scrutiny by the Comptroller & Auditor General (CAG) for the 11.4 km Versova-Andheri-Ghatkopar metro rail project and its operations.
MS Mehta, its chief executive, told Business Standard: ''MMOPL is quite open to a CAG audit. We welcome it, though we have not heard officially.'' He however, expects the arbitration process to be completed without delay.
Mehta also made it clear the company had no plan to exit the project, developed under the public-private participation model. ''MMOPL has recently sent a letter to the state government with an appeal to provide financial assistance, including a one-time grant of Rs 1,000 crore so the capital is recovered. Besides, the company wants exploitation of real estate on the route, permissible under the Metro Railway (Operations & Maintenance) Act, 2002.''
He argued the relief sought was also due to the higher interest cost borne by the company. He said the government’s response on its proposals was yet to come.
Mehta was responding to state chief minister Devendra Fadnavis' statement that Mumbai Metro One fares should be raised only after a CAG audit. The chief minister in April had announced such an audit, especially to examine the actual expenditure and operating cost. The project cost had surged to Rs 4,321 crore from Rs 2,356 crore. He also said legal options would be explored to prevent a fare rise.
Fadnavis was speaking in the wake of burgeoning opposition to the Fare Fixation Committee (FCC) allowing the company a band of Rs 10 to 110 from the present fare structure of Rs 10, 20, 30 and 40 on the route. The Shiv Sena, part of the coalition government, has protested; opposition parties have blamed the government.
Further, the government has appealed to the Centre to de-notify the Mumbai Metro One project from the ambit of the 2002 law; it could be brought back after the law was changed. Minister of state for urban development Ranjit Patil, who met Union minister Venkaiah Naidu, argued the amendment should ensure the power to fix fares stays with the government.
Earlier, the project was being developed under the Tramways Act, whereby the state had powers of fare fixation. Meanwhile, commenting on the state government's decision to probe contracts awarded by the earlier government to American company Louis Berger as project management consultant, Mehta said it had no decisive role on the project. However, MMOPL was open for an inquiry.
MS Mehta, its chief executive, told Business Standard: ''MMOPL is quite open to a CAG audit. We welcome it, though we have not heard officially.'' He however, expects the arbitration process to be completed without delay.
Mehta also made it clear the company had no plan to exit the project, developed under the public-private participation model. ''MMOPL has recently sent a letter to the state government with an appeal to provide financial assistance, including a one-time grant of Rs 1,000 crore so the capital is recovered. Besides, the company wants exploitation of real estate on the route, permissible under the Metro Railway (Operations & Maintenance) Act, 2002.''
He argued the relief sought was also due to the higher interest cost borne by the company. He said the government’s response on its proposals was yet to come.
Mehta was responding to state chief minister Devendra Fadnavis' statement that Mumbai Metro One fares should be raised only after a CAG audit. The chief minister in April had announced such an audit, especially to examine the actual expenditure and operating cost. The project cost had surged to Rs 4,321 crore from Rs 2,356 crore. He also said legal options would be explored to prevent a fare rise.
Fadnavis was speaking in the wake of burgeoning opposition to the Fare Fixation Committee (FCC) allowing the company a band of Rs 10 to 110 from the present fare structure of Rs 10, 20, 30 and 40 on the route. The Shiv Sena, part of the coalition government, has protested; opposition parties have blamed the government.
Further, the government has appealed to the Centre to de-notify the Mumbai Metro One project from the ambit of the 2002 law; it could be brought back after the law was changed. Minister of state for urban development Ranjit Patil, who met Union minister Venkaiah Naidu, argued the amendment should ensure the power to fix fares stays with the government.
Earlier, the project was being developed under the Tramways Act, whereby the state had powers of fare fixation. Meanwhile, commenting on the state government's decision to probe contracts awarded by the earlier government to American company Louis Berger as project management consultant, Mehta said it had no decisive role on the project. However, MMOPL was open for an inquiry.