Rs 1,100-crore debt relief lifeline for Mumbai Metro One

The Versova-Andheri-Ghatkopar corridor carries more than five lakh commuters every day. Representational pic

Mumbai Metro One, which operates the Versova-Andheri-Ghatkopar corridor, has received a major financial lifeline after signing a debt restructuring agreement that will reduce its debt by more than Rs 1,100 crore. Insolvency proceedings against the company will also be withdrawn.

Mumbai Metro One Private Limited (MMOPL) has signed a debt restructuring agreement with the government-backed National Asset Reconstruction Company Limited (NARCL). The agreement is valued at Rs 2,771.32 crore.

The restructuring will ease Metro One's debt burden and pave the way for the withdrawal of insolvency proceedings, allowing the operator to continue running Mumbai's first metro corridor without the immediate shadow of financial proceedings.

MMOPL is a joint venture in which Reliance Infrastructure holds a 74 per cent stake and the Mumbai Metropolitan Region Development Authority (MMRDA) holds 26 per cent. The Versova-Andheri-Ghatkopar corridor carries more than five lakh commuters every day.

As part of the restructuring, NARCL will have the right to nominate a director to the MMOPL board. A monitoring committee comprising representatives of the lenders and Metro One will also oversee the restructuring.