World Bank, ADB likely to fund new metro lines, says MMRDA

MMRDA has decided to use its own funds for initial works, money for remaining work will be arranged through loan from global lending agencies

Following the state government’s approval to two new metro lines, DN Nagar- Mankhurd Metro 2B and Wadala-Thane- Kasarvadavli Metro 4, the project proponent — Mumbai Metropolitan Region Development Authority (MMRDA) — has started working on the funding pattern of these projects. While, it has decided to use its own funds for initial works, money for remaining work will be arranged through loan from global lending agencies.

MMRDA has decided to use its own funds for initial works, money for remaining work will be arranged through loan from global lending agencies(HT File Photo)

MMRDA officials said the Asian Development Bank (ADB) has assured partial-fund for the Metro 2B and the World Bank has showed interest in funding Metro 4. The financial assistance from these banks are expected to be about 43-48% of the total project cost, for which they are expected to levy interest of about 1.4%. 

MMRDA additional commissioner Pravin Darade said “We are going to use the fund available with us for civil works. The loan amount will be used for other aspects of the projects such as purchase of rolling stock, electrical works.” 

Incidentally, ABD has already extended the loan for other two metro lines — Dahisar- DN Nagar Metro 2A and Dahisar East- Andheri East Metro 7. 

The 40-km Dahisar- Charkop- Bandra- Mankhurd (DCBM) Metro 2 is divided into two parts- Dahisar to DN Nagar (18 km), DN Nagar to Mankhurd (22 km).  Delhi Metro Rail Corporation (DMRC) will build the Metro 2A and operate it. On other hand, MMRDA will just carry out civil works of Metro 2B, Metro 4 and Metro 7. 

Interestingly, DMRC will take care of technical works of these metro lines and later operate them. 

Contractors for civil construction of Metro 2A and Metro 7 have already been appointed and now, MMRDA is going to invite tenders for Metro 2B and Metro 4.