Debt deal for Anil Ambani’s Mumbai Metro 1 collapses, longer trains for 5 lakh riders on hold

The deal intended to save Mumbai's first Metro line, Metro 1, from its debts has failed, causing the company running it to return to insolvency proceedings. This puts the five lakh passengers who commute daily on the Versova-Ghatkopar Metro 1 line on hold for longer trains. Reliance Infrastructure, which owns 74% of the company, led the project.

The metro line opened in 2014 under a public-private partnership (PPP), with Reliance Infrastructure holding a 74% stake and the Mumbai Metropolitan Region Development Authority (MMRDA) owning the remaining 26%. However, the company began defaulting on its debts in 2018 due to inflated construction costs and rising interest rates.

The restructuring agreement, which promised to ease financial strain, fell through, leaving the company still unable to augment its four-car trains to six-car trains. Fresh insolvency proceedings have been initiated, and the longer trains that were initially planned will likely not come to fruition.