AIIB’S ₹3,700-crore fillip to Railways’ MUTP-3 project
₹10,947-CR PROJECT Remaining amount will be provided by rail finance corporation, rly ministry and state
MUMBAI: In a major boost towards upgrading the suburban railway network in the Mumbai Metropolitan Region (MMR), the Mumbai Rail Vikas Corporation (MRVC) along with the Maharashtra government on Monday signed a loan agreement of ₹3,700 crore ($500 million) with the Asian Infrastructure Investment Bank (AIIB) for railway projects under the Mumbai Urban Transport Project (MUTP)-3.
The total cost of the project is ₹10,947 crore of which ₹3,700 crore will be financed by AIIB.
“The loan from the AIIB has a five-year grace period [for repayment] and a maturity of 30 years,” said a senior MRVC official, on condition of anonymity. MUTP-3 aims to expand the suburban railway network, improve the services and eastwest connectivity in MMR.
The projects under MUTP-3 will include a new suburban railway corridor between Panvel and Karjat railway stations for an estimated cost of ₹2,783 crore; procurement of 47 air-conditioned (AC) local trains worth ₹3,491 crore; quadrupling of the railway line between Virar and Dahanu stations for ₹3,578 crore; elevating railway corridor between Airoli and Kalwa stations for ₹476 crore; controlling midsection trespassing for ₹551 crore; and providing technical support for ₹69 crore.
Of the remaining amount for the projects under MUTP-3, ₹2,629 crore will be taken on lease from the Indian Railway Finance Corporation (IRFC), while the rest of the cost will be shared by the railway ministry and the Maharashtra government. The Maharashtra government and MRVC in August signed a Subsidiary Finance Agreement (SFA) for projects under MUTP-3.
Welcoming the move, transport experts stated that railways and the state government should work in sync to start the on-ground work instantly for the project. “Projects under MUTP-3 are very crucial as Mumbai is now overburdened and after projects under MUTP-3 materialise, the population will shift to MMR, which is necessary. The state government should work alongside railways and provide support in land acquisition and rehabilitation. The projects should not be delayed,” said transport expert AV Shenoy. MRVC has started work on the midsection trespass control on the railway lines and the tendering process for other projects is also being initiated.
The land acquisition for the projects started in 2019, while the on-ground work is likely to start after monsoon this year.
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