REL, French co to team up for Mumbai Metro

NEW DELHI: In What would be the first major global transport company to commence public transport operations in India, E 4.3 billion French giant Veolia would form a 70:30 JV with Reliance Energy (REL) for the Mumbai Metro One Project, which would operate the metro.

The French company would be a minority partner in the consortium which would be involved in the execution of the first phase of the metro project as announced earlier.

Veolia is setting up a wholly-owned subsidiary in India, Veolia Transport India, which would serve as its operating-cum-holding company in the country.

An REL spokesperson told ET, “We are in discussions with Veolia for an O&M arrangement. However, the final detailed modalities and terms and conditions of the JV are yet to be finalised. Thus, it is pre-mature to offer a comment at this stage.”

In May, a consortium led by Anil Dhirubhai Ambani Group’s Reliance Energy bagged the contract for the construction of the first phase of the Mumbai metro project. REL led the consortium with a 69% stake along with Mumbai Metropolitan Regional Development Authority which holds 26% with the remaining 5% with Veolia Transport.

Veolia Transport India’s activities will include infrastructure transportation services, consultancy services in the transport sector, and downstream investments in companies executing Veolia Transport’s projects in India.

Veolia Transport, a part of the E25-billion diversified French giant Veolia Environnement, is Europe’s leading private operator in public transportation. It operates various public transport systems including bus lines, commuter rail, metro, light rail, coach, trolleybus and boat. While it has extensive presence in Europe, US, Australia and parts of Latin America, this would be its first major move in Asia.

Currently, Veolia has presence in India through two sister concerns including Veolia Water India which is active in the water sector and Chennai-based CES Onyx which is engaged in waste management.