The Maharashtra government has decided to fund new AC rakes for Mumbai Suburban Rail without taking a loan. The state will pay INR 2413 crore, which is half of the total cost, to purchase 268 new AC rakes. The money will be provided through the state’s annual budget.
Earlier, the plan required the state to raise money through loans under the Mumbai Urban Transport Project (MUTP) III and III-A.
According to officials, the state has now decided to skip the loan portion for buying the AC rakes. The decision was taken after consultation with the central government. Since the rakes will take time to arrive, the state can allocate funds gradually in upcoming annual budgets.
The plan received approval from the state’s infrastructure cabinet committee on Tuesday, August 19. It has now been sent to the Centre for clearance. Officials said the approval process may take several months, after which the Centre will release its share of funds.
The state and the Centre had already taken a loan of INR 3500 crore from the Asian Infrastructure Investment Bank (AIIB) for MUTP III. That loan will be repaid equally by both governments. For MUTP III-A, both the Centre and the state are to contribute equally to a cost of INR 33,690 crore.
MUTP III-A covers large-scale projects such as new railway stations, new suburban rakes, and new railway lines. The state government approved MUTP III-A in 2018. Other agencies such as the Brihanmumbai Municipal Corporation (BMC), Navi Mumbai Municipal Corporation, CIDCO, and MMRDA will also share the cost of MUTP III-A. So far, MUTP III has achieved 42% progress.