Mumbai Urban Transport Project-3: AIIB likely to provide Rs 3,500-crore loan

Neeraj Tiwari
The 2018-19 Railway budget had sanctioned Rs 519 crore for the project.

ASIAN INFRASTRUCTURE Investment Bank (AIIB) is likely to loan Rs 3,500 crore to the Mumbai Railway Vikas Corporation (MRVC) for the Mumbai Urban Transport Project-3 (MUTP-3), sources said.

MUTP-3 includes two new suburban corridors, the quadrupling of an existing one and other projects, together worth nearly Rs 11,000 crore.

Earlier, the World Bank was expected to shoulder most of the project cost with a loan of Rs 7,000 crore, and the state government and Centre were supposed to take responsibility of the rest. Projects under MUTP-3, whose cost has been pegged at Rs 10,947 crore, include quadrupling of the Virar-Dahanu corridor, addition of a Panvel-Karjat suburban corridor and another new Airoli-Kalwa link.

The 2018-19 Railway budget had sanctioned Rs 519 crore for the project.

However, the World Bank wanted the Panvel-Virar elevated corridor, which is included in MUTP-3A, to be included in MUTP-3, and this is where talks hit a roadblock.

A delegation from the AIIB met MRVC officials, sources said.

They have given us a positive response. If everything goes well, by the first week of June, there will be an official announcement, the official said. The AIIB delegation held three meetings with MRVP officials.

A proposal for the funding of MUTP-3A, whose cost is pegged at Rs 3,500 crore, has been sent to the Finance Ministry for consideration. We are waiting for the response. Once we get that, we will go ahead for international financial institutions to fund MUTP-3A, the official said.

Till now, the MRVC has taken a loan of Rs 1,602 crore for MUTP-1, pegged at Rs 4,452 crore; and Rs 1,750 crore for MUTP-2A, pegged at Rs 8,087.11 crore; from the World Bank.