Reliance Infra Share Price: After the news of one-time settlement of dues from MMRDA, the stock of Anil Ambani's company Reliance Infra saw a rise!

Reliance Infra Share Price: After the news of the one-time settlement of dues from MMRDA, the stock of Anil Ambani's company Reliance Infra saw a rise. During the trading session, it rose to Rs 206.65.

Maharashtra Govt: The Eknath Shinde government of Maharashtra has postponed the plan to take over Mumbai's Metro 1 line for the time being. However, the cabinet has directed the executive committee of MMRDA to evaluate the settlement of the loan of Rs 1700 crore of Mumbai Metro One Private Limited (MMOPL). Metro 1 is the oldest metro line in Mumbai and 4.6 lakh passengers travel on it every day.

'Metro 1' is operated by MMOPL.

This is the only metro line that was built based on a public-private partnership. It is operated by Reliance Infra-promoted special purpose vehicle (SPV) Mumbai Metro One Private Limited (MMOPL). MMRDA has a 26 percent stake in this SPV and the remaining 74 percent is owned by Anil Ambani's Reliance Infra (R-Infra). Mumbai Metro One Private Limited owes six banks - State Bank of India (SBI), IDBI Bank, Canara Bank, Indian Bank, Bank of Maharashtra and IIFCL (UK).

Reliance Infra's stock surged after the news.

Reliance Infra's stock surged after the MMRDA executive committee ordered an evaluation for the settlement of the loan of Rs 1700 crore. Even amid the decline in the market, the company's stock climbed up to 10 percent. Let us tell you that MMOPL had signed an agreement to pay the total outstanding amount of its creditors in March 2024. According to this agreement, MMOPL has to pay a total of Rs 1700 crore. MMRDA and MMOPL together paid the initial Rs 170 crore to the banks under this agreement.

The government had reversed its decision.

On March 11, the state cabinet approved the purchase of a 74% stake in Reliance Infra in Metro-1 by MMRDA for Rs 4,000 crore. Also, MMOPL was allowed to exit the project. But now MMRDA has said that it does not have the money to complete this deal. MMRDA asked the Maharashtra government to give money but the government refused. On the other hand, the state cabinet had also reversed the decision to buy MMOPL.

Plan to meet with six banks for OTS.

After this, the MMRDA commissioner is planning to hold a meeting with all the six banks that have dues on MMOPL to discuss the matter. From April 2023 to June 2024, MMOPL has paid interest of more than Rs 225 crore. However, the help sought from the government by MMRDA was also rejected. As a result, the cabinet changed its decision to buy it. According to the news published in the Economic Times, in the cabinet meeting of June 26, it was decided that the executive committee of MMRDA should be asked to discuss a one-time settlement.

Insolvency proceedings were going on against MMOPL.

ET's report claimed that MMRDA was directed to take immediate action to implement this decision of the Cabinet. It has also been asked to implement the decision soon. Insolvency proceedings were going on against MMOPL. IDBI Bank started this proceeding in October 2023 for the outstanding amount of Rs 133.37 crore. SBI did this in August 2023 due to not being able to pay the outstanding amount of Rs 416 crore. To settle the outstanding amounts in one go, MMRDA paid Rs 170 crore, which is 10% of the outstanding. After this payment, NCLT stopped the bankruptcy proceedings.