Future Metro Projects: MMRDA to borrow from domestic lenders

AIIB and ADB will be providing Rs 13,660 crore for the construction of the four Metro lines. Meanwhile, Metro 3, being implemented by Mumbai Metro Rail Corporation (MMRC), will be partially funded by Japan International Cooperation Agency (JICA).

Written by Benita Chacko | Mumbai | Published:July 7, 2017 4:35 am
MMRDA, Mumbai metro, Mumbai metro construction, Mumbai metro projects, Asian Infrastructure Investment Bank Metro 3 work near Malad Link Road. Aishwarya Maheshwari

With the state government unwilling to be the guarantor for loans borrowed from multilateral funding agencies for the construction of metros in the city, the Mumbai Metropolitan Region Development Authority (MMRDA) now intends to seek loans only from domestic lenders for the remaining Metro lines. “By becoming guarantor for our loans, the state government gets an added liability in their books. So, henceforth, for the remaining Metro lines, we will be borrowing from our domestic lenders,” said Pravin Darade, Additional Metropolitan Commissioner, MMRDA.

So far, multilateral lending agencies are funding the construction of the Metro lines in the city. While Asian Development Bank (ADB) is partially funding the construction of Lines 2A, 2B and 7 corridor, Metro 4 will be partially funded by Asian Infrastructure Investment Bank (AIIB). AIIB and ADB will be providing Rs 13,660 crore for the construction of the four Metro lines. Meanwhile, Metro 3, being implemented by Mumbai Metro Rail Corporation (MMRC), will be partially funded by Japan International Cooperation Agency (JICA).

This year, MMRDA also plans to take up the construction of the Thane-Bhiwandi-Kalyan corridor (Line 5) and the Swami Samarth Nagar-Vikhroli corridor (Line 6). Apart from this the MMRDA also plans to construct an airport Metro corridor (Line 8), an extension of Line 7 to Mira-Bhayandar and another underground extension to the Santacruz Airport and an extension of the Metro 4 to the GPO. For these projects the MMRDA is now considering borrowing from domestic lenders.

When agencies like MMRDA borrow from multilateral agencies they have to be routed through the state, which then has to act as the guarantor. The state already has a debt stock of Rs 4.13 lakh crore.

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