World Bank lifts freeze on Mumbai loans

Among the MUTP’s projects is the Mumbai Metro. The freeze on an ongoing $ 229 million loan—about half had already been disbursed—was imposed in March after the Bank investigated complaints from the ground that MMRDA was failing the stated rehabilitation policy for project-affected people (PAPs)—over 17,000 households and almost 2,500 shops and small industrial units.

‘‘There has been much progress by the MMRDA in the past months,’’ said World Bank spokesperson Sudip Mozumder. ‘‘Rehabilitation is more transparent now.’’

MMRDA Joint Commissioner and project director of MUTP Milind Mhasikar welcomed the decision. ‘‘The projects can progress now without any hitch,’’ he said. The big-ticket MUTP projects, which include widening important roads and laying additional tracks for suburban trains, are due to wind up by 2008-09.

Following the March suspension, the Bank had posted a sociologist at the MMRDA office to guide rehabilitation issues. Mhasikar was appointed as MUTP director after the Bank said vacancies should be filled.

In May, the MMRDA also put out a tender for a consulting agency that will guide PAP families—mostly slum dwellers—to adapt to life post-rehab.

‘‘We have already received proposals from parties in Mumbai and outside,’’ said Mhasikar. ‘‘We will finalise the agency in a month’s time.’’

World Bank teams will continue to track MMRDA’s rehabilitation efforts, said Mozumder and its sociologist would remain at the MMRDA office. ‘‘The Bank as well as the state government agree that challenges remain and that successful rehabilitation is an equally important aspect of urban infrastructure building,’’ he added.