MMRDA signs MoUs worth Rs 4 lakh crore with financial institutions expedite infra projects

The Housing and Urban Development Corporation (HUDCO) signed Memoranda of Understanding (MoUs) for Rs 1.5 lakh crore, the biggest line of credit, to finance housing, transport, and urban development schemes. This funding boost is likely to help inclusive and sustainable urban development by financing large-scale affordable housing and civic infrastructure projects.

The Rural Electrification Corporation (REC) signed a Rs 1 lakh crore contract to finance schemes in the areas of urban mobility, energy efficiency, and integrated infrastructure, increasing MMRDA’s capacity to implement long-term development schemes.

Another Rs 1 lakh crore was provided by the Power Finance Corporation (PFC), aimed at developing energy-efficient infrastructure as well as increasing sustainable urban services.

To boost the transport infrastructure in the region, the Indian Railway Finance Corporation (IRFC) pledged Rs 50,000 crore towards building metro lines, suburban rail corridors, and multi-modal connectivity systems, enhancing last-mile access and lessening urban congestion.

The National Bank for Financing Infrastructure and Development (NaBFID) allotted an additional Rs 7,000 crore towards funding smart infrastructure and urban development.

“The MoUs are lines of credit, based on a 20:80 equity-debt model, which will allow MMRDA to expedite project implementation while ensuring financial sustainability,” MMRDA stated in their official release.

The new funding, as per the MMRDA officials, is an extension of earlier alliances with REC and PFC, which have so far invested more than Rs 60,000 crore into metro and urban infrastructure projects in the region. MMRDA now seeks to establish the MMR as a $300 billion economy by 2030 and create over three million jobs through integrated, climate-resilient growth.

During the summit, Chief Minister Devendra Fadnavis highlighted the fiscal health of the state, noting that the state debt is merely 17% of the state’s GDP, and its fiscal deficit is less than 3%, which confirms to investors that the environment is stable and growth-oriented.

“Today, we’ve taken the first major step to position Mumbai and Maharashtra as global destinations by closing almost $50 billion in funding from Indian institutions. Our next focus is to raise the remaining $50 billion from global institutions, ensuring financial stability and a strong foundation for Maharashtra’s future,” Fadnavis said.

Also in attendance at the forum was Deputy Chief Minister and MMRDA Chairman Eknath Shinde who spoke of the nation’s faith in creating world-class infrastructure through innovation, robust public sector institutions, and Indian leadership.

“Though MMRDA has earlier obtained financial assistance of over 3.5 lakh crore crore from Videshi (foreign) organisations in Davos, I am particularly delighted that these Lines of Credit, valued at Rs 4.07 lakh crore, are with Swadeshi organisations. This consolidates our vision of Aatmanirbhar Bharat—a self-reliant India—and indicates enhanced domestic capability to invest in and implement mega infrastructure projects,” he said.