Metro Phase 2: MMRDA seeks state help to service Japanese loan

MUMBAI: The Mumbai Metropolitan Regional Development Authority ( MMRDA) is talking to Maharashtra government for financial assistance for servicing the proposed Japan International Cooperation Agency (JICA) loan for the underground metro project connecting downtown Colaba with Seepz in the north via Bandra.

The Authority is expecting over Rs 11,500 crore from JICA as soft loan for funding the Rs 21,000-crore, while MMRDA and the Centre will be contributing Rs 4,000 crore each.

"As per the project, the revenue generated through toll collection will be enough to recover the operational and maintenance costs. But interest cost will not be covered through this. Therefore, we are seeking state assistance for servicing the proposed loan," Authority's commissioner Rahul Asthana said.

"In other states, the government provides assistance in the form of interest cost or by providing land. State participation is important in such projects," he noted.

Asthana further said he will meet the officials of the Planning Commission, and Union Urban Development and Economic Affairs Departments in New Delhi next Monday to appraise them of the project.

"A detailed plan of the project will be prepared and submitted to Japan for JICA funds," he said.

On the first phase of the metro section coming up on the Versova-Andheri-Ghatkopar stretch, he said, "it was scheduled to be completed by this March, but due to certain technical reasons, it has been delayed. We expect it to be completed by the end of this year," he added.