Reliance had projected of loss till 2018 in its business plan for Mumbai metro at the stage of bidding itself.

Reliance which was the successful bidder for the Mumbai metro project, had acquired the project by projecting reduced expenses of about Rs 1048 crores to get this important PPP project from MMRDA. In the business plan submitted along with its bid it had projected and provisioned for losses for running the metro for 8 years of operations. That the company is now working against its own planned projection and causing harassment to mumbaikars for earning high profits can be understood from the fact. This Information has been provided to RTI activist Anil Galgali by the MMRDA administration. The dispute between the Reliance and the MMRDA has resulted in inconvenienceing the mumbaikars due to a fare hike as well as an projected fare hike. With an objective to understand the dispute RTI activist Anil Galgali had filed an RTI query seeking various information pertaining to the project from the MMRDA. In a reply the MMRDA Informed Galgali that, Reliance and IICU - IL&FS had bid for the Mumbai metro project under PPP method. The financial bid of Reliance was projected cost of Rs 2356 crores and sought a viability gap funding of Rd 1251 crores, whereas the IICU - IL&FS submitted it's bid by projecting a cost of Rs 3404 crores and seeking VGF of Rs 1296 crores due to which Reliance promoted Mumbai metro one private limited secured the project. As per the agreement executed between Reliance and the MMRDA, the project was to be completed by 2010. In the business plan submitted by the Reliance it was estimated that the company will require 8 years to break even in this project and hence had planned to sustain loss upto 2018. Instead of sticking to its business plan the Reliance, right from day one had started cribbing about the losses, which is still going on. The state govt along with the Reliance Co had finalised the fare pattern on 3/9/2013 and had approved the fares for the Mumbai metro uptil year 2044-45 and had allowed for stage wise fare increases of 11% every 4 years, which was agreed upon by the Reliance as well. To secure the Mumbai metro bid, the Reliance agreed to all the terms and conditions of the project. It is also understood that such projects need a long gestation period, which was reflected in its business plan of operating in loss for 8 years. Has now reversed it's stand and taking the MMRDA, the state govt and the mumbaikars for a ride. Looking at the scenario, Galgali wondered as to why MMRDA is not filing a case of cheating and breach of trust and violation of agreement case against the Reliance. Galgali in his demand has asked CM Devendra Fadnavis to ban Reliance from taking part in any of the PPP projects in future. Also the Reliance is seeking an additional assistance from the govt which is similar to the difference between the bid of Reliance and IICU - IL&FS, that of Rs 1048 crores exposes the Chinks in the armour of the Reliance that it had purposely under bid to just secure the project and now is resorting to arm twisting by holding the mumbaikars to ransom, observed Galgali.