Louis Berger Committee Report debunks MMOPL claim of increase in project cost

RTI Activists Anil Galgali submitted his strong objection to enhanced fares of Mumbai Metro before newly formed Fare Fixation Committee and claim that Louis Berger Committee Report debunks MMOPL claim of increase in project cost which was appointed by MMRDA and MMOPL mutual understanding. Mr Galgali appeal that The Mumbai Metro 1 should be made available for use for the common man as well. RTI Activists Anil Galgali who was continusely follow up Mumbai Metro related issue. On Friday, Mr Galgali submitted strong objection in a 2 page to Fare Fixation Committee. In a letter, Galgali explains that Mumbai Metro Rail Project (Versova – Andheri - Ghatkopar Corridor) has been completed after all safety clearences from the Commissioner of Metro Railway Safety & Ministry of Railways, and the commercial operation was started on 8th June 2014. The original project cost approved by the govt is Rs 2356 Crores with Rs 650 crores being Viability Gap Funding (VGF). The project agreement was signed on March 2007 and the construction time was 5 years i.e till March 2012. The MMOPL started actual construction somewhere in February 2008. Galgali also explains that Reliance Energy Ltd now known as Reliance Infrastructure Ltd, has been claiming the the cost of the project has increased to Rs 4321 Crores for various reasons. On this ground they have been demanding for fare revision. It is important to highlight here that, to understand the claim of Reliance Infra of cost increase, the MMRDA appointed M/s Louis Berger Consulting Pvt Ltd (LBG) to carry out detailed scrutiny of the revised project cost, and justification of the increase in the revised project cost by MMOPL. Based on the information available and document submitted by MMOPL from time to time, M/s LBG submitted its report to MMRDA, in which it has observed that only fraction of the increased amount can be justified, it also contended that, it is difficult to absorb a view that the project cost of Rs 2356 crores has gone up to Rs 4321 crores due to a delay of JUST 18 months. The MMOPL had fixed their Board Meeting in May 2014, to fix the fare for initial opening of Mumbai Metro Line 1. Despite the dissent of Governament Directors on the Board of MMOPL, who demanded that fare should be in accordance to the terms of the Concession Agreement, the Reliance Energy Ltd passed the resolution for increasing the fare to Rs 10, 20, 30 & 40 as against Rs 9, 11 &13 provided in the Concession Agreement. This whole situation arose only due to the laxity of the Central Govt’s in amending the Central Metro Act, due to which the MMOPL took benefit under the Metro Railway Act, said Galgali. Anil Galgali demand that complete audit of the project be handed over to CAG to ascertain the authenticity of the MMOPL’s claim of project cost increase. Also the report of M/s Louis Berger Consulting Pvt Ltd, be studied to ascertain the justification of cost increase. Also the MMOPL should be made to adopt the fares fixed in the Concession Agreements that it had signed and executed at the time of getting the PPP project. This needs to be done to restore the confidence of the Mumbaikars that the rule of law is prevailent and the public assets are not misused by pvt players for their profits in a PPP project. The Mumbai Metro 1 should be made available for use for the common man as well,add Galgali.