Centre paves way for Rs8,000-cr loan for 2 metro lines
Officials will now begin process of securing the loan for Metro 2A (Dahisar-DN Nagar) and Metro 7 (Dahisar East-Andheri East) from Asian Development Bankmumbai Updated: Nov 26, 2015 22:33 IST
The central government’s department of economic affairs (DEA) has cleared a proposal for financial assistance from the Asian Development Bank (ADB) for two new metro lines between Dahisar and Andheri.
Now, officials will start process of securing a loan of around Rs 8,000 crore – about 52% of the project cost – from the bank.
The two metro lines in question, Dahisar-DN Nagar (Metro 2A, part of Metro 2) and Dahisar East-Andheri East (Metro 7), will be developed by the state-run Mumbai Metropolitan Region Development Authority (MMRDA).
Metro 2 will be built in three phases – Dahisar East-DN Nagar (Metro 2A), DN Nagar-BKC (Metro 2B), and BKC-Mankhurd (Metro 2C).
MMRDA commissioner UPS Madan said “The DEA’s approval means the centre has extended its guarantee for the loan, which will be repaid by the state government.”
The state government had approved these two lines last month before prime minister Narendra Modi laid the foundation stone.
The 18-km Metro 2A will cost Rs 5,566 crore to build, while the 16.5-km Metro 7 line will cost Rs4,737 crore.
According to MMRDA officials, tenders for the civil construction of these lines will be invited by mid-December.
To ensure that any delay in securing the loan does not affect their construction, MMRDA has decided to use funds raised by the state government for civil construction.
The state government, which will pay 48% of the project cost, has appointed the Delhi Metro rail Corporation (DMRC) to develop the Dahisar-DN Nagar section, while Metro 7 will be built by MMRDA.
DMRC will act as an interim consultant for both lines. MMRDA recently received in-principle approval for the acquisition of land under the jurisdiction of the Airports Authority of India and the Manjara Educational Trust to build a car depot for Metro 7 and Metro 2A, respectively.