December 11, 2021 4:13:50 am
The Mumbai Metropolitan Regional Development Authority (MMRDA), which has taken up several mega infrastructure projects in and around Mumbai, will be appointing SBI Capital Markets Ltd for raising funds worth Rs 60,000 crore, required to complete the ongoing and upcoming projects.
The decision about the same was taken during the 151st meeting of the Authority in October, chaired by Minister for Urban Development, Ekanath Shinde.
According to officials, as per the estimated cash flow of the MMRDA, it will be getting a good revenue from the projects as well as from other sources of income in the next 25 years. However, considering the actual project implementation period and, in case of non-receipt of revenue from the expected sources in the next 5 years, then there will be a requirement of Rs 60,000 crore.
The official said it was approved during the meeting to raise the required funds for the project in the form of loan amounting to approximately Rs 60,000 crore and the authority also approved the government guarantee and other guarantees as required for raising such funds.
It was decided to appoint SBI Capital for studying various loan options for raising funds and appoint them as a Transaction / Project Advisory Services on a Single Source Basis. As per the scope of service and scope of work mentioned in the proposal for raising funds of the Authority in the form of loan, SBI Capital Markets Ltd. will be paid a fund raising fee of 0.20% of the total loan amount,” the official said. It also authorised the MMRDA to appoint three expert staff required for raising the loan fund through outsourcing as well as to take all further steps required for the implementation of the above resolution.
The capital expenditure of the infrastructure project undertaken by the MMRDA is estimated to be Rs 1,74,940 crore.
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