Mumbai Metro: The new realty magnet

Industry experts believe that there is an enormous scope for real estate development in areas surrounding the Mumbai Metro line.

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Infrastructure development acts as a catalyst for growth of the residential and commercial property segments and in this context, the Phase -1 of the Mumbai Metro has played a pivotal role.

Taking this forward, Maharashtra chief minister and chairman, MMRDA, Devendra Fadnavis has sanctioned the expenditure of Rs 35,400 crores for the development of 118-kms Metro network.

It includes 40-kms Dahisar-CharkopBandra-Mankhurd Metro-2 corridor (Rs 12,000 crores); 40-kms WadalaGhatkopar-Thane-Kasarvadavali Metro-4 corridor via Wadala GPO and R.A.Kidwai Marg (Rs 12,000 crores); 27-kms Dahisar-E-AndheriE-Bandra-E Metro-5 corridor (Rs 8,100 crores) and 11-kms Jogeshwari-Vikhroli Link Road Metro-6 corridor (Rs 3,300 crores).

The Metro project will attract people in its vicinity as it helps in better connectivity to other parts of the city. Hence, industry experts believe that there is an enormous scope for real estate development in and around the metro.

Additionally, property prices in the area are expected to rise significantly once the project gets underway. Ramesh Nair, COO business and international director, JLL India, points that the areas which will benefit from the Metro connectivity have already seen a price rise of 400 percent over the last eight years and this trend is set to continue with this imminent launch.

Phase 1 of the Mumbai Metro has resulted in a marked improvement in the realty development along the metro route and areas close to metro stations. It has helped in better east-west connectivity within the city and helped in saving precious time commuting between work and home."The metro phase 1 project was a blessing for most people travelling from eastern to the western suburbs and vice-versa, as there was no direct link earlier between these areas. The metro phase 1 project has helped in taking the load off the existing road and rail infrastructure and has received a very good response from commuters utilising the services at optimal levels. This decongestion has attracted buyers who were earlier hesitant to buy residential or commercial spaces earlier. Places like Chandivali and Sakinaka in Andheri (east) are easily accessible after Phase 1 of the metro came up and demand is taking an upward trend," says Manju Yagnik, vice-chairperson, Nahar Group.

The infrastructural initiatives have always contributed to the real estate boom in the city. Nishant Agarwal, managing director, Avighna, believes that the future infrastructure plans for Mumbai will also continue to fuel growth in this sector.

"The proposed Underground Metro line connecting Dahisar to Mankhurd will further strengthen the resolve of real estate developers to venture into these areas with housing and commercial projects," he says.

Source - Property Times

Reliance Infrastructure to seek subsidy to keep metro fares low

MUMBAI: Reliance Infrastructure-led Mumbai Metro One on Monday said it will seek metro operational subsidy from the state government to keep the fares lower, even as the fare fixation committee has recommended its revision in the range of Rs 10 to Rs 110 for the over 11km-long corridor. 

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Meanwhile, Mumbai Metro One (MMOPL), which is operating the network, has decided to continue the current fare range of Rs 10 to Rs 40 till October 31, after which it will review the fare structure and gradually increase the ticket costs depending on the government response. 

"The recommendations by the fare fixation committee (FFC) has taken into consideration the cost to operate the metro line, business viability and the value propositions that metro brings in to its commuters. 

"While at the business level we continue to make significant cash losses, considering the interest of commuters, it is decided to maintain the existing fare for the time being while we engage with the government and other authorities to progress on leads given by the FFC," MMOPL chief executive Abhay Mishra said. 

The Reliance Infrastructure in a statement also said that experts appointed by the FFC has also suggested that MMOPL should be granted metro operational subsidy by the government to keep the fare affordable and should fully monetise the potential of real estate available at metro properties, to ensure business viability. 

The FFC on July 8 submitted its report recommending the revised fare after analysing all aspects, including the cost to operate the line and alternate modes of transport, sustainability and affordability. 

It had recommended to retain the minimum fare at Rs 10 and increase maximum fare to Rs 110. 

The committee, while fixing the fares had said, "MMOPL is not strictly comparable with other metros in the country, which have the distinguished advantage of concessional interest and lower power tariff, whereas Mumbai Metro is paying commercial rate of interest and a very high electricity cost." 

"It is a common practise across the globe to provide operational subsidy to transportation services which leads to business viability and fare affordability for a larger section of commuters," Mishra added.

Source - TOI 

Naidu & Suresh Prabhu call for speedy clearances for Metro rails considering safety norms

Minister of Urban Development Shri M.Venkaiah Naidu today expressed concern over delays in according safety clearances for Metro Rail projects resulting in non-utilisation of such projects built with substantial investments.

Naidu reviewed the commissioning of some Metro projects which were completed sometime back and still not put to use for want of safety clearances. Minister of Railways Shri Suresh Prabhu, Chairman of Railway Board, Secretary (Civil Aviation), Secretary (Urban Development), Chief Commissioner of Railway Safety, CMD of Delhi Metro Rail Corporation, former CMD of DMRC Shri Sridharan and concerned senior officials participated in the discussions.

Venkaiah Naidu and Suresh Prabhu asserted that metro rail safety cannot be compromised but at the same time clearances should not be delayed. Both the ministers called for measures to ensure timely decisions.

Naidu noted that Jaipur Railway has sought safety clearance as early as in August 2014 and is yet to be given the clearance. Similarly, Chennai Metro has sought rolling stock clearance in August, 2014 which is still due.

During the discussions it transpired that on account of rapid expansion of metro rail services in the country, there was a need for a separate Safety Certification Agency for Metro projects and the same should be examined in detail. Chairman of Railway Board stated that Railway Ministry would have no objection for creating such a mechanism. Civil Aviation Ministry, the nodal ministry for railway safety Informed that a proposal has been moved for creating two more posts of Commissioners of Metro Safety as against only one at present.

Venkaiah Naidu has asked all the concerned to meet again shortly for firming up the measures to be taken for ensuring timely safety clearances for Metro projects.

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