Cabinet approves MRVC funding hike

An MRVC press note said the enhanced equity support would strengthen its financial base and enable it to efficiently implement railway infrastructure projects worth over ₹64,644 crore

Mumbai: The Maharashtra cabinet on Tuesday approved an increase in the authorised share capital of the Mumbai Railway Vikas Corporation Limited (MRVC) from ₹25 crore to ₹500 crore, providing a major boost to expanding suburban railway infrastructure and services in Mumbai.

Image for representation (HT Photo)

The MRVC was established in 1999 as a joint venture between the union government’s ministry of railways and the state government, with an equity participation ratio of 51:49, respectively. The corporation is responsible for implementing infrastructure development projects under the Mumbai Urban Transport Project (MUTP), including development, expansion, and modernisation of Mumbai’s suburban railway network, as well as enhancing passenger amenities and improving overall service quality.

As the scale and number of projects entrusted to the MRVC has grown substantially, the state cabinet has approved an increase in its share capital from ₹25 crore to ₹500 crore, and an increase in its paid-up share capital from ₹25 crore to ₹225 crore, out of the total authorised share capital. The cabinet has also approved the state government’s contribution of ₹98 crore towards its share in MRVC’s enhanced paid-up capital.

An MRVC press note said the enhanced equity support would strengthen its financial base and enable it to efficiently implement railway infrastructure projects worth over ₹64,644 crore, including MUTP-III, MUTP-3A and MUTP-3B. It will also enhance the MRVC’s ability to mobilise resources for future suburban rail infrastructure projects, further improving capacity, connectivity and commuter convenience across the Mumbai Metropolitan Region, the press note said.