Reliance Infrastructure gets relief as SBI and IDBI Bank withdraw insolvency petition against Mumbai Metro One

Anil Ambani-backed Reliance Infrastructure has received a breather after SBI and IDBI Bank withdrew insolvency petition filed in NCLT Mumbai against Mumbai Metro One Private Limited (MMOPL). Reliance Infrastructure holds 74 per cent stake in Mumbai Metro One while the balance is with Mumbai Metropolitan Regional Development Authority (MMRDA).

This comes after a one-time settlement issued by all MMOPL lenders. Mumbai Metro One, inaugurated in June 2014, spans 11.4 kilometres between Versova, Andheri, and Ghatkopar, serving as the city's oldest and busiest metro line.

Daily ridership on the Metro One line exceeds 4.50 lakh commuters, highlighting its vital role in Mumbai's transportation network.

In August 2023, SBI filed an application before the NCLT against the Mumbai Metro to recover Rs 416.08 crores.

SBI and IDBI Banks are part of the six lenders consortium that financed the Mumbai Metro project.

Reliance Infrastructure Ltd. said in a stock exchange filing on January 15 that the consortium's total principle debt in Mumbai Metro One Pvt Ltd was Rs 1,711 crore.

The lenders agreed to settle the debt after The Eknath Shinde-led Maharashtra Cabinet has given an in-principle approval for the acquisition of Rinfra's stake Mumbai Metro One. RInfra's 74 per cent stake in the venture has been valued at Rs. 4,000 crore, according to industry sources.

Earlier this month, the Supreme Court overturned its prior ruling that compelled the Delhi Metro Rail Corporation (DMRC) to pay an arbitration award of about Rs 8,000 crore to Reliance Infra's subsidiary, Delhi Airport Metro Express Pvt. Ltd (DAMEPL).

www.thehindubusinessline.com dt. 16.04.2024