Mumbai’s Metro projects get a boost, two financial institutions agree to fund ₹13,660 crore
Mumbai city news: The MMRDA has already started the civil construction of Metro 2A and Metro 7, and it has floated bids for the start of the work on Metro 2B and Metro 4 corridorsmumbai Updated: Jun 21, 2017 01:35 IST
In a major boost to the Mumbai metro projects in the city, two multilateral financial institutions have agreed to fund Rs13,660 crore for four metro projects. The Mumbai Metropolitan Region Development Authority (MMRDA)—the nodal agency for the metro projects—will soon ink the loan agreements.
With this development, the work on the crucial metro lines will gather pace. The MMRDA has already started the civil construction of Metro 2A and Metro 7, and it has floated bids for the start of the work on Metro 2B and Metro 4 corridors. “We have started work with the funds that we have. The loan amount is required for rolling stock, signaling equipment, etc,” an MMRDA official said.
Senior MMRDA officials said that Dahisar-DN Nagar (Metro 2A) corridor, DN Nagar-Mankhurd (Metro 2B) corridor, and Dahisar East-Andheri East (Metro 7) corridor will be partially funded by Asian Development Bank. While Wadala-Ghatkopar-Thane (Metro 4) corridor will be partially funded by Asian Infrastructure Investment Bank.
The MMRDA faced a big hurdle in finalising the loans for Metro projects after the state government had declined to stand guarantor for the loans. After the initial hiccups, the state government agreed to route the loans. The loan will be given to the Centre, who will transfer it to the state and from the state, it will be passed on to MMRDA.
“We have finalised the loans for the four metro lines. The loan amounts for Metro 2A and Metro 2B are Rs2,803 crore and Rs4,695 crore respectively. While the loan amounts for Metro 7 and Metro 4 are Rs2,246 crore and Rs3,916. The loans will be given at nominal interest rates, like any other multilateral institutions,” said Pravin Darade, additional metropolitan commissioner, MMRDA.
Darade added that work on Metro 2B and Metro 4 will start by November.