MMRDA to get interest-free loan aid of Rs 1,354 cr for tunnel project

An official said that the MMRDA will contribute Rs 477.34 crore and the Cabinet has been allowed to raise Rs 7,326 crore for the project through a bilateral and multilateral loan from other financial institutions but at a lower interest rate.

The government, however, has clarified that the state will not bear any burden of payment and MMRDA will have to bear the burden of cost escalation and is allowed to change the project’s alignment if needed.

Thane Metro project

During the meeting, an approval was also given for the revised plan of Rs 12,220-crore’s Thane’s Metro Rail ring project or integral Ring Metro rail project. In a recent Union Cabinet meeting, an approval was given for the 29-km Metro rail project having 20 elevated stations and two underground stations.

The Mumbai Metro Railway Corporation Limited (MMRCL) will be implementing the project. The project will be jointly financed by the state and union government.

Thane-Borivali tunnel project

In another decision, the Cabinet approved an increased Rs 18,800 crore for the 11.85-km Thane-Borivali underground twin tube tunnel project, despite the Finance department’s concerns over the increased fiscal deficit.

In July this year, Prime Minister Narendra Modi had laid the foundation stone for Thane Borivali tunnel project worth Rs 16,600 crore. However, the approval has now been given for Rs 18,800 crore in the Cabinet meeting.

The twin tube tunnel between Thane and Borivali alignment will pass below Sanjay Gandhi National Park creating a direct connection between the Western Express Highway on Borivali side and Thane Ghodbunder Road on Thane side.

The project will reduce the journey from Thane to Borivali by 12 km, reducing the travel time by about 1 hour. The six-lane project will be implemented by the MMRDA.

An official said that the MMRDA will contribute Rs 1,350 crore, while the state will contribute Rs 2,417crore for the project and the Cabinet has allowed MMRDA to raise Rs 15,071 crore for the project through a bilateral and multilateral loan from other financial institutions but at a lower interest rate.

An official from the Finance department said that taking the financial constraints and burden in consideration, the state government’s contribution for the secondary loan worth Rs 2,417 should be made available by the Urban Development department or the MMRDA should raise it through toll or others.