Paving the way for the expansion of Mumbai’s suburban railway corridor, a subsidiary finance agreement to fund projects under Mumbai Urban Transport Project-3 (MUTP-3) was signed on Thursday between the state government and the Mumbai Railway Vikas Corporation (MRVC), which will be executing the projects.
Projects planned under MUTP-3 include an elevated suburban corridor between Airoli and Kalwa railway station, quadrupling of Virar and Dahanu Road lines, Panvel to Karjat corridor and procurement of air-conditioned local trains among others. The project is expected to cost Rs 10,947 crore, of which Rs 6,129 crore will be raised through loans and the remaining will be borne by the Ministry of Railways and the state on a 50:50 cost-sharing basis.
MRVC, which has finalised negotiations with Asian Infrastructure Investment Bank (AIIB) to raise $ 500 million, is expected to sign the agreement by the end of July. The subsidiary finance agreement with the state was one of the preconditions of the signing of loan with AIIB.
A senior MRVC official said, “The loan agreement with AIIB is being vetted by the Department of Economic Affairs and is expected to be finalised by July-end.”
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