According to a new report in the Indian Express, the Maharashtra government is looking to tie up with the Asian Development Bank (ADB) to fund about 50% of the cost for developing two elevated lines in Mumbai:
Line 2: Dahisar – DN Nagar (a part of the larger Dahisar-Bandra-Mankhurd line)
• Cost: Rs 4,994 crore
• Distance: 18.6 km
Line 5: Dahisar East – Andheri East (a part of the larger Dahisar East – Andheri East – Bandra East line)
• Cost: Rs 4,737 crore
• Distance: 16.5 km
The MMRDA approved the Detailed Project Reports (DPRs0) for these lines earlier this month in a meeting chaired by Devendra Fadnavis, the Chief Minister of Maharashtra (See: MMRDA Approves 4 Metro Lines Totaling 118 KMs). Now, these two lines are slated to come up before the state cabinet for their approval this month.
As per one MMRDA official:
We have had two or three concrete meetings with the ADB, which is keen on financing the two Metro lines. However, to fast-track the project, we are aiming at starting the civil work at the earliest, even if a formal loan agreement takes longer to be firmed up.
The rate of interest would be about 1-1.5 per cent, and the repayment period would be around 35 years with a 10-year moratorium. The ADB’s involvement is not as much as JICA’s, giving the implementing agency more independence.
The MMRDA is likely to fund about 50 per cent of the project cost for both the lines and the rest will financed through the loan. At this point, they will not seek funds from the central government.
The MMRDA & state government have also considered other foreign financing agencies such as the Japan International Cooperation Agency (JICA) and the World Bank (WB) to finance the projects, but the talks with the ADB are in a more advanced stage. The JICA has already sanctioned a Rs 13,235 crore loan for the 33.5-km underground Colaba-Bandra-Seepz Metro line 3 which is estimated to cost Rs 23,136 crore. This loan carries an interest rate of 1.4 percent and will be paid over 30 years after a 10-year moratorium.
As a reminder to all of you, the Delhi Metro Rail Corp will be executing one or both of these lines, and a formal announcement is expected soon since the government is keen to make these lines operational by the next state elections in 2019.
For more updates on Mumbai’s Metro, check out the Mumbai section of the Metro Rail Guy!