State Signs Agreement With MRVC to Acquire Funding for MUTP-3

State Signs Agreement With MRVC to Acquire Funding for MUTP-3

The Maharashtra State Government and the Mumbai Rail Vikas Corporation (MRVC) have signed a Subsidiary Finance Agreement or SFA to fund the Mumbai Urban Transport Project-3 (MUTP-3). 

The proposed plans under MUTP-3 consist of an elevated corridor between Airoli and Kalwa Railway Station which is said to cost Rs 476 crore. Additionally, there will be a corridor to establish connectivity between Panvel and Karjat at a cost of Rs 2,783 crore while the plan also includes the quadrupling of Virar and Dahanu Road at an estimated cost of Rs 3,578 crore. 

It is said that a total of 47 AC local trains and other infrastructure will be acquired at a cost of Rs 3,491 crore. Other expenses include technical support (Rs 69 crore) and railway mid-section trespass control (Rs 551 crore).

In total, the MUTP-3 is estimated to cost Rs 10,947 crore. The details mention that Rs 6,129 crore will be generated via loans while the rest of the cost will be shared between the Ministry of Railways and the State Government equally. Part of the funding will also come from the MMRDA (Mumbai Metropolitan Region Development Authority) as well as the City and Industrial Development Corporation (CIDCO), it is said.

It’s worth noting that the MRVC has reportedly finalized terms to borrow $500 million from the Asian Infrastructure Investment Bank (AIIB). Establishing an SFA was one of the prerequisites to receive this loan from the AIIB, it is said.

Read - Railways' MUTP-3 Project To Receive Financial Aid

Land acquisition for the proposed projects has begun in 2019 and work is expected to start after monsoons subside in the state. The Central Government approved MUTP-3 in 2016 and has set a deadline of 2022 for its completion. 

It is well known that infrastructure projects have been severely hampered due to the coronavirus lockdowns imposed from the latter part of March until the end of May. Though the Brihanmumbai Municipal Corporation (BMC) permitted essential pre-monsoon works in several areas. 

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