Mumbai Metro Timeline:

1967-68: A Govt. of Maharashtra study on notes the possibility of a new rapid transit system
such as underground rail
1973 (Regional Plan): Cautions against capital intensive projects like the Metro, suggesting
instead decongesting South Mumbai, moving economic activities to Bandra Kurla, Navi
Mumbai, etc.
1974: Indian Railways comes up with a plan for a Colaba-Kurla underground rail, which is
shelved because its too expensive
1997: Tata Consultancy Services prepares a feasibility study on the Metro
1999: Chief Minister Narayan Rane assures a Mumbai Metro Planning Group that the project
is "under consideration by the Cabinet sub-committee"
2004: MMRDA presents a master plan to Chief Minister Sushilkumar Shinde
2005: Delhi Metro Chairman Mr. E. Sreedharan presents Phase 1 of the project to Chief
Minister Vilasrao Deshmukh, who approves it.
Jan-March 2006: Maharashtra Cabinet finally approves VAG, financial bids are called for
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Feb 2007: In the early eighties the question was whether to have it or not. Having taken
nearly 20 years to decide in favour of an additional mass rapid transit system for Mumbai, the
debate revolved around two options: SkyBus or Metro. Once Metro got the nod, the polemic
shifted to broad gauge or standard gauge.
The Maharashtra government opted for standard gauge (56.5 in) while the Railways were
keen on broad gauge (66 in). The confusion over a few centimetres took over two years to
resolve. After some more infuriating twists and turns, award of contract and a stone-laying
ceremony, the much-hyped Mumbai Metro project now seems to have got stuck over who
will fork out the Rs 650-crore viability gap funding. VGF, an instrument floated by the
finance ministry, is to help part-finance infrastructure projects undertaken on a public-private
partnership basis.
Earlier, it had taken quite a while for the state to decide the VGF amount. REL which is
executing the project along with Mumbai Metropolitan Regional Development Authority
(MMRDA) had pegged the VGF at Rs 1,251 crore, which the state halved to nearly Rs
650 crore.

The Centre seems to have questioned this as well. It has a valid point. The finance ministry
feels that the project cannot be considered under the public-private-partnership norms, as the
bidding was over even before the committee for this purpose was set up. The finance ministry
now has forwarded the proposal to the urban development ministry to sanction necessary
funds, if it wants, under the Jawaharlal Nehru Urban Renewal Mission. Meanwhile questions
have been raised about the project cost.
Critics point out that at Rs 215 crore per km, Mumbai Metro costs are double that of Delhi
Metro's Rs 120 crore. The wranglings of the past 34 years have multiplied the project cost
manifold, from Rs 900 crore in '74 to Rs 20,000 crore-plus now. And cost is not the only
casualty. The sufferings of hapless Mumbai commuters as many as 60 lakh of them crisscross the city is also up. Sadly, there is no sign of their miseries ending soon. The
government should realise Mumbai's suburban traffic system cannot be kept on auto-pilot for
too long.
March 2007: MUMBAI: The Maharashtra Budget, to be tabled on March 22, is likely to
make an allocation of around Rs 300 crore for Mumbai's much debated Metro rail project.
Top sources told ET that the state finance minister, Jayant Patil, has been forced to make a
provision of Rs 300 crore since the Centre has turned down the state's request to fork out Rs
650 crore as viability gap funding (VGF) for the project. Promoted by Anil Ambani's
Reliance Energy (REL) and the Mumbai Metropolitan Region Development Authority
(MMRDA), a state-run undertaking, the project has been awaiting the VGF.
The central government and the Planning Commission, however, are unwilling to clear the
amount for a variety of reasons, high project cost being one of them. As a result, the
Maharashtra government is being forced to release funds for the Rs 2,356-crore phase I of the
mass transit system. The foundation stone of the project was laid by Prime Minister
Manmohan Singh on June 20, 2006.
As per the norms, the Centre offers 20% of the total project cost as viability gap funding.
However, in this case, the promoters are seeking an assistance of Rs 650 crore from the
Centre, which works out to 26.7% of the phase I project cost. The Union government has
made it clear that it cannot make an exception and change rules for the Mumbai Metro rail
project.
The first phase of the project is about 11-km long, connecting Versova, a western suburb, and
Ghatkopar, a central suburb. "The state government will contribute Rs 300 crore, while the
balance would come from the cash-rich MMRDA," a senior official said.
The central agencies are also unhappy with the high average cost of the project compared to
similar projects elsewhere in the country. The per km cost for Mumbai Metro has been
pegged at Rs 215 crore, while in Delhi it was as low as Rs 120 per km.
"The Mumbai project should cost less since there would be less land acquisition compared to
that in Delhi," sources said. In Delhi, the metro has largely been running underground, while
in Mumbai, it will operate on elevated tracks and hence would require less land.

With the Centre unwilling to concede the state's request, raising the VGF has become the
state's responsibility. Besieged with many a financial constraint, the state government,
actually, is not in a position to take a hit of Rs 650 crore, sources said.
As a result, it has roped in its cash cow, the MMRDA, to share the burden by forking out Rs
350 crore, while the state will chip in with Rs 300 crore. "The Budget will make the position
clear," an official said.
Jan 2008: The finance ministry is considering a hike in the ceiling for viability gap funding
(VGF) to 30% from the existing 20% for urban transport systems like metro, monorail and
road rapid transport systems. The first VGF for such a project, Mumbai Metro being built by
ADAG-promoted Reliance Energy, has been approved.
COMMENCEMENT & CONCERNS:
Feb 2008: After an inexplicable delay of 19 months, groundwork for the first corridor of
Mumbai Metro project began on Friday without any indication of a time frame for its
completion. Ironically, no senior official of MMRDA, one of the implementing agencies,
attended the function, indicating a friction between the private player and the state
government.
The delay, caused by several problems which remain unresolved even now, has escalated the
project cost from Rs 1,500 crore to Rs 2,356 crore. The foundation stone for the 12.4 km
Versova-Andheri-Ghatkopar corridor was laid by prime minister Manmohan Singh in June
2006 and work was expected to begin in October 2006. The delay has extended the tentative
deadline of the project to 2010 from 2009.
A special purpose vehicle (SPV), between MMRDA and Mumbai Metro-One consortium by
Reliance Energy, is implementing the project. The SPV would execute the project through a
public-private partnership with a debt-equity ratio of 70:30. Reliance Energy has teamed up
with France's Connex which has a 5% stake in the SPV and REL and MMRDA have 69% and
26% stake respectively.
Surprisingly, MMRDA officials chose to stay away from the function while Tina Ambani,
Anil Ambani's wife, put in an appearance. The work started with digging the first pile for soil
testing at the junction of Guru Hargovindji Road (Dhaku Road) and Andheri-Kurla road near
ICICI Bank.
Trying to explain the delay, director of Mumbai Metro One Private (MMOPL) KP
Maheshwari said the MMRDA had given only a 4 km long stretch and that too in patches. Mr
Maheshwari claimed that as per the agreement signed between MMOPL and the MMRDA in
March 2007, the state agency has just about three months to hand over the remaining 8.4 km
of the total 12.4 km stretch between Versova and Ghatkopar.
Asked about the escalation in costs, Mr Maheshwari said he won't be able to give the figure
but hoped that the company would easily avoid escalation by completing the project within
the set deadline. The state has not received the viability gap fund (VGP) of Rs 650 crore from
Centre for the project and as such the MMRDA may have to bear the cost, sources said.

Recently, MMOPL awarded the Rs 435 crore contract for construction of viaduct for the
metro to Simplex Infrastructure which has started pile-load test (digging work) following the
strict directives from the state government to start work by February 7, 2008.
MMRDA sources said the state government had cut a very sorry figure at the Union
government level due to the inordinate delay and it was forced to issue an ultimatum to
MMOPL to start work.
Some bottlenecks, however, still remain. Though a site in Wadala meant for casting yard has
been handed over to MMOPL, it will also require 30 acre land at DN Nagar in Versova and
another plot in Sarvoday Nagar, Ghatkopar.
Versova land is in a legal wrangle which, sources said, could take an indefinite time to get
solved. Meanwhile, the Bharatiya Janata Party (BJP) has termed the Metro construction work
as illegal, as no work order has been issued under the Tramways Act of 1886.