Make-in-India: 3 Metro projects in Mumbai may face delays

Under the policy, it is mandatory to procure 75% of the metro coaches from within the country, however, the ADB opposes the provision

Opposition by an international bank to a provision in the Make-in-India policy may derail three Metro projects in Mumbai, thereby undermining chief minister Devendra Fadnavis’ efforts to set up coach-manufacturing units under the Make-in-Maharashtra initiative.  

Under the Centre’s policy, it is mandatory to procure 75% of the metro coaches from within the country, however, the Asian Development Bank (ADB), which is financing three metro projects in the city, opposes the provision.

The logjam between the Centre and ADB is likely to delay procurement of coaches for Metro-7 (Dahisar east- Andheri east), Metro 2A (Dahisar-DN Nagar) and Metro-2B (DN Nagar to Mandale).

Sources said the process of acquiring rolling stock or coaches takes a minimum of 24 months and the Mumbai Metropolitan Regional Development Authority (MMRDA) plans to make two of the three corridors operational by 2019.  It also plans to finish the civil construction of one corridor by the end of 2019.  

In a recent meeting, Fadnavis, who heads MMRDA, asked officials to prepare a policy that offers incentives to coach-manufacturing companies to set-up their units in Maharashtra. However, senior officials are sceptical of the move as the decision to procure coaches from within the state or country depends on how the Centre and ADB iron out differences.  

A senior official from MMRDA said, "If Make-in-India cannot happen, we cannot force the Make-in-Maharashtra initiative (on ADB). The state version depends on the decision that the ADB and the Central government arrives at."  

While MMRDA is financing civil construction, the cost of railway tracks, systems and coaches will be funded through a loan from ADB.  

UPS Madan, metropolitan commissioner of MMRDA, said, "The ministry of urban development has already written to ADB and is trying to convince it about the policy. The decision is likely in a week or two."