MMRC secures Rs 8,000 crore more funding from JICA for underground Metro Line 3

Meanwhile, now the state government will cover the Mumbai Metropolitan Region Development Authority’s (MMRDA) equity share in the increased project cost of Metro Line 3. This change was formalized through the new notification brought out by the state urban development department on Tuesday.

An MMRC official said that since Mumbai Metropolitan Region Development Authority is involved in several other Metro and mega infrastructure projects, the state will pay the equity of additional Rs 1,163.3 crore to the MMRC. Following the revised project cost, the state’s contribution has increased to Rs 3,566 crore from the original Rs 2,402.70 crore. The MMRDA has paid the initial equity share of Rs 2,402.70 crore, now the state will cover the additional Rs 1,163.3 crore.

The notification detailed that the original cost of the Metro 3 project, initially scheduled for completion by December 2021, was Rs 23,136 crore. However, due to geographic and demographic challenges, land acquisition difficulties, and the Aarey carshed land acquisition issue, the cost increased by Rs 10,269.82 crore, raising the total to Rs 33,406 crore. This revised cost was approved on August 25th, 2022. Additional challenges posed by the Covid-19 pandemic and a stay on the Aarey carshed land acquisition have now pushed the project’s expected operational date to September this year.

Between 2021 and 2024, the project incurred extra costs, including Rs 520 crore for consultant fees, Rs 700 crore for rehabilitation and resettlement, Rs 1,500 crore for architectural systems, Rs 150 crore for office expenses, and Rs 1,000 crore for agreements. This added Rs 3,870 crore to the project cost, bringing the total to Rs 37,275.50 crore.