Mumbai - The state government has refused to be the guarantor for the Metro 2A and Metro 7 projects, for which the MMRDA is trying to raise funds through loans.
The ambitious Metro project of the MMRDA could hit a roadblock if the loans do not come through to enable the purchase of the Metro's rolling stock - the trains needed to run the project, sources tell Mumbai Live. The MMRDA is raising its own funds to finance the construction of the civil works - the rail routes and metro stations - needed for the Metro 2A and Metro 7 projects. However, the trains were to be financed through loans. The MMRDA wants to complete the purchase of the trains before the civil works are completed. Accordingly, the MMRDA has approached the Asian Development Bank for an amount equivalent to 45 per cent of the total project cost. Such a loan request pre-supposes the role of the local government as a guarantor. However, with the state government backing out, the project itself could be in jeopardy, say sources. This was confirmed by MMRDA public relations direcor Dilip Kavathkar.
The state government has, on an earlier occasion, refused to be the guarantor for a loan requisitioned for the Mumbai Trans Harbour Link (Sewri - Nhava Sheva coastal road) project. Critics have expressed their disappointment at the government's stance.
MMRDA officials are however hopeful that a middle path will be found that will resolve the financial hurdles being faced by both the Metro projects.