 "Mumbai Metro")
The Supreme Court on Wednesday rejected the special leave petition (SLP) filed by the Reliance Infrastructure’s arm Mumbai Metro One Pvt Ltd (MMOPL) against the Bombay High Court’s decision to stay the fare hike proposal. Based on the recommendations of the fare fixation committee’s proposals made in July last year, MMOPL had proposed to revise the fare band from Rs 10 to Rs 110 from the present level of Rs 10, Rs 20, Rs 30 and Rs 40. The apex court has asked the company to argue its case before the high court, which has slated hearing on January 29 on the Mumbai Metropolitan Region Development Authority’s (MMRDA) petition filed in August last year against the fare hike.
The Bombay High Court had on December 17, 2015 stayed the fare slab of Rs 10, Rs 20, Rs 25, Rs 35 and Rs 40 proposed by MMOPL to be effective from December 1. MMRDA wanted MMOPL to continue to charge fare in slabs of Rs 9, Rs 12 and Rs 13 as agreed in the concession agreement.
Confirming the SC rejecting its SLP, an MMOPL official told Business Standard: “The company will make its argument in the high court during hearing scheduled for January 29.”
MMOPL had revised fare after it failed to get relief from the state government. The company had sought a one-time grant of Rs 1,000 crore, a monthly subsidy of Rs 21.75 crore and the right to monetise real estate along the railway stations to avoid a fare increase.
R-Infra had shown Mumbai Metro’s loss at Rs 49 crore during the third quarter of FY16. The company expects the loss to be Rs 300 crore by the end of FY16.
The fare in the single-journey token category was proposed to be increased by a moderate Rs 5 per trip. Instead of the earlier slabs of Rs 10, 20, 30 and 40, the new structure will have five slabs comprising Rs 10, 20, 25, 35 and 45.
