MMRDA gets nod to raise Rs 50,000 crore via bonds

A senior official revealed that the initial amount to be raised will be based on immediate requirements, potentially starting with Rs 10,000 crore and gradually increasing to meet the maximum requirement.

At present, the MMRDA is engaged in several mega infrastructure projects worth several lakh crores. To finance these, it has borrowed funds from various financial institutions and depended significantly on land monetisation.

The official noted that raising money through bonds would alleviate the need to sell land at lower prices to meet funding needs.

The official also highlighted that MMRDA’s strong credit score and valuable assets in prime locations, including Bandra Kurla Complex, make bonds an attractive option for raising funds.

With the approval in place, MMRDA will now begin the process through an underwriter to gauge market response and proceed with listing accordingly.

As a leading planning body in the Mumbai Metropolitan Region, the MMRDA is currently overseeing projects worth over Rs 3 lakh crore, including the Metro project with a cumulative cost of about Rs 70,000 crore.

The authority has faced significant challenges in funding these large-scale projects. However, it has successfully secured a total of Rs 1,03,622 crore from prominent funding agencies and achieved financial closure for 37 projects in the region, marking a significant milestone in its financial strategy.