Delay in loan process will not affect work on new Metro lines | mumbai | Hindustan Times
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Delay in loan process will not affect work on new Metro lines

Tenders for construction of two Metro projects — Dahisar- DN Nagar and Dahisar East- Andheri East— will be invited in a month and contracts will be awarded in three months

mumbai Updated: Oct 12, 2015 23:30 IST
HT Correspondent
The Asian Development Bank (ADB) will provide financial assistance to the MMRDA, which will amount to 52% of the project cost, at an interest rate of 1.2%. 
The Asian Development Bank (ADB) will provide financial assistance to the MMRDA, which will amount to 52% of the project cost, at an interest rate of 1.2%. (For representation)

In a bid to ensure the loan process does not stall work on Metro, the Mumbai Metropolitan Region Development Authority (MMRDA) has decided to use its money in the initial stage of the project.

According to the MMRDA officials, tenders for construction of two Metro projects — Dahisar- DN Nagar and Dahisar East- Andheri East— will be invited in a month and contracts will be awarded in three months. The Asian Development Bank (ADB) will provide financial assistance to the MMRDA, which will amount to 52% of the project cost, at an interest rate of 1.2%.  The rest of the cost will be borne by the state and MMRDA.  

“The loan process may take up to a year to be completed. So we will fund the civil construction, which will ensure the work goes according to the schedule. In the meanwhile, the loan procedure, too, will be completed. The loan amount will be used for the latter part of the project such as purchase of Metro rakes,” said MMRDA commissioner UPS Madan.

The MMRDA expects the actual construction work to start by March.

The state government approved these Metro projects on Tuesday. Interestingly, the Centre approved the projects within the next two days, keeping in mind Prime Minister Narendra Modi’s visit to the city on Sunday, wherein he laid the foundation stone for these lines.

The ministry of urban development and department of economic affairs have given their nod to taking a loan from the ADB. The MMRDA is in talks with the Airport Authority of India (AAI) to acquire its 16 hectares land in Dahisar, to build a depot for the Dahisar East- Andheri East line. “The state has initiated talks with the Manjara Trust, which was allotted a plot in Charkop, for a depot for the Dahisar-DN Nagar Metro line,” Madan said.