Mumbai Metro 3 Transit Rent Escalates Over 1,800 Per Cent: What Is Behind The Rise?

The rent paid to 576 project-affected persons (PAPs) from the Girgaon-Kalbadevi area for the Mumbai Metro 3 project has surged by over 1,800 per cent since 2017, according to a Right to Information (RTI) response.

Of the 617 project-affected families living in 28 buildings in the Girgaon-Kalbadevi area, 576 opted to receive transit rent, as revealed by the RTI response. In the fiscal year 2017-18, the Mumbai Metro Rail Corporation (MMRC) paid a total of RS 2.38 crore in transit rent. This amount escalated to Rs 46.39 crore in the fiscal year 2023-24, reflecting an increase of 1,843.29 per cent.

This significant increase was discovered through an RTI application filed by Jeetendra Ghadge, a resident of South Mumbai. However, metro rail officials have explained that this dramatic rise in rent is due to several factors, including the timing of the displacements.

An MMRC official, who requested anonymity, stated in Hindustan Times (HT) that the reported increase in transit rent is misleading. The official explained that only a small number of PAPs were relocated in 2017, with most displacements occurring in the following years.

Consequently, the total rent payments rose as more families were affected. Furthermore, the rental agreements between MMRC and PAPs include a clause for a 10 per cent annual increase in transit rent. Therefore, the official argued, a rise of over 1,800 per cent over seven years is not feasible. "The increase is consistent with the 10 per cent yearly hike stipulated in the agreements," the official said.

The RTI response also detailed the status of permanent rehabilitation buildings. Of the three planned buildings, one is expected to be completed by July 2025, another by November 2026, and the timeline for the third building is still pending due to ongoing tendering processes.

Concerns Over Project Delays

Jeetendra Ghadge expressed concerns about the delays in the project. "MMRC needs to streamline its processes to prevent further delays, or this project will continue to drain public resources without a clear end in sight," he told HT. However, MMRC officials countered that the construction of rehabilitation buildings cannot proceed concurrently with tunnelling work.

Mumbai Metro 3 Project Costs

Additionally, the project cost for Metro 3 has risen significantly. From its initial budget of Rs 23,136 crore, the cost has now escalated by Rs 14,140 crore, or 61.11 per cent, reaching a new total of Rs 37,276 crore.

About Mumbai Metro 3

The Mumbai Metro 3 corridor, also known as the Aqua Line is nearing completion, with passenger services expected to begin soon between Aarey and Bandra Kurla Complex.