State can’t recommend new panel for metro fares

The Union ministry of urban development (MOUD) in a communication has informed the state government that it cannot recommend or appoint on forming a new fare fixation committee (FFC) for Metro-1 Versova-Andheri-Ghatkopar (VAG) as the matter is sub-judice after the Mumbai Metropolitan Region Development Authority (MMRDA) approached the Bombay high court.

This comes in after the state government had in a letter on August 3, 2015 requested that the Comptroller Auditor General (CAG) conduct a full audit of the project maintained by the Mumbai Metro One Private Limited (MMOPL) for larger public interest.

In July 2015, the FFC had recommended an increase in the existing fare of Rs 10, 20, 30 and 40 to between Rs10 and Rs 110. However, after this the MMRDA had filed a writ petition in the high court opposing the recommendation of the FFC and had stated that the fares should instead be Rs 9 and Rs 13 as was decided in the concession agreement between MMRDA and MMOPL.

The communication by MOUD further stated, “The proposal of government of Maharashtra (GOM) to reject the recommendations of the FFC and get the fares reviewed by a fresh FFC was examined in consultations with the union ministry of law and justice and as the matter is still pending, it would not be appropriate for us to take a decision in the matter at this stage.”

Meanwhile, the Bombay high court on December 17, 2015 while hearing on the writ petition said that it would require some time to study the report filed by the FFC and granted a stay on the fare announced by the MMOPL in November 2015. The matter is now scheduled for hearing in the Bombay high court on January 29, 2015.