Mumbai Urban Transport Project-III: AIIB to lend $500 million to expand railway network

A formal loan agreement is expected to be signed between Mumbai Railway Vikas Corporation (MRVC) — the nodal agency that executes MUTP projects — and AIIB in January next year.

AIIB officials said the loan amount towards the two rail corridors will be released after 90 per cent of the land needed for the projects has been acquired. D J Pandian, Vice-President and Chief Investment Officer for AIIB, said: “Land acquisition is a challenge in India like in many other countries. But MRVC has so far acquired more than 60 per cent of the land required for these projects. Once 90 per cent of the land is acquired, the first installment will be dispersed.”

He added that MRVC is coordinating with the Maharashtra government to complete land acquisition for the projects. A total of 58 hectare needs to be acquired for the Virar-Dahanu line, which will cost Rs 3,578 crore. Another 33 hectare is required for the Panvel-Karjat line.

MRVC, meanwhile, has begun tender work and designs are being finalised for the 36 FOBs. “Work on these bridges has started and we will reimburse MRVC for the amount spent on the construction of these FOBs,” said Pandian. The construction of these 36 bridges is estimated to cost Rs 3,500 crore.

Apart from the three projects, MRVC is also set to construct a new corridor between Airoli and Kalwa, to be funded by state and central governments. These projects being executed under MUTP-III are worth Rs 10,947 crore.

MRVC has been negotiating with AIIB over the past year for the funding of projects under MUTP-III after talks with World Bank could not materialise. After MUTP-III, MRVC is also looking at AIIB for funding projects under MUTP-3A. Laurel Ostfield, Director General of AIIB, said, “We are considering several other projects for which AIIB will be providing funds.”

AIIB has urged MRVC to construct gender and disabled-friendly stations. A survey carried out by MRVC to ascertain the needs of women commuters had highlighted that over 40 per cent of the women commuters face harassment while travelling in Karjat-Neral and Virar-Dahanu corridors. “The survey was an eye opener. It pointed out proper toilets and lights are not in place at stations. The project is being designed keeping in mind the findings of the survey. We want to construct modern stations with modern facilities,” said Pandian. AIIB is in the process of investing around $ 3 billion across the country. It will be investing in sectors including energy, water and transport. The largest investment of $1.809 million has been made in the transport sector, followed by $425 million in multi-sector projects and another $400 million for water-related projects.