With the 146-km Metro project cost escalating from
Rs. 19,525 crore to
Rs. 47,092 crore, the city's planning body proposes to seek loans from international banks to finance the project.
The Mumbai Metropolitan Region Development Authority (MMRDA) is contemplating taking a loan of $20
billion (approximately
Rs. 20,000 crore) to build seven Metro lines.
“We are looking at international financial institutions to finance our Metro projects in the city. Officials from the World Bank and the Japanese Bank of International Cooperation have shown keen interest in participating in the Metro projects,” said Metropolitan Commissioner Ratnakar Gaikwad.
“We will need finance for many of our future Metro projects because some of these will be built underground, making the project costlier,” he added.
The MMRDA is seeking a loan of $10 billion each from the two banks, which it plans to repay in 30 years.
The MMRDA will soon meet World Bank India head Roberto Zagha, who will give the terms of the loan, while the Japanese Bank of International Cooperation officials have already held discussions with MMRDA officials.
The World Bank is funding the Mumbai Urban Transport Project, which aims at improving the city’s infrastructure.
Of the nine proposed Metro lines, MMRDA has started work on the 11.07-km Versova-Andheri-Ghatkopar Metro. Built at a cost of Rs. 2,356 crore, this line is expected to be completed by February 2011.
Meanwhile, work on the Charkop-Bandra-Mankhurd Metro line (32 km) is expected to start by the year-end.