The Mumbai Metropolitan Region Development Authority (MMRDA) has entered into an agreement with the German state-owned development bank KfW to raise over Rs 850 crore to support development of urban infrastructure.
The development authority will also be raising around Rs 365 crore through its own resources as its equity contribution for these projects on sustainability in addition to the Frankfurt-headquartered bank’s loan.
The funds procured from KfW and MMRDA’s resources will be primarily allocated towards various sustainable development projects within and around the Mumbai Metropolitan Region.
These initiatives include the development of green corridors, solid waste management systems, recycling and reuse facilities, and the promotion of renewable energy solutions to address environmental concerns and enhancing the quality of life for residents in the bustling metropolitan area.
This will be undertaken through the government’s MMR Urban Infrastructure Amenities Project and the total cost of this project is around Rs 1,215 crore. Of this, the MMRDA will contribute Rs 365 crore from its corpus.
Prior to this, KfW accorded an in-principle approval for two loans totalling over 545 million Euros or Rs 4,767 crore to the Maharashtra government’s development authority to support two key mass transit projects in Mumbai.
These projects are Metro line 4 from Wadala in central Mumbai to Kasarvadavli in Thane, and Metro line 4A that extends the connectivity from Kasarvadavli to Gaimukh in Thane. These fully elevated lines will be of 34.82 km in length with 32 stations easing the distress of millions of commuters each day and help provide a cleaner, less congested city.
The 545-million-euro loan approved by KfW is the highest financing sanctioned to any Indian entity ever.
The arrangement with the German lender come into effect as the development authority has floated the tender with the proper approvals of the financial partners KfW.
The government of Maharashtra body MMRDA is responsible for the infrastructure development of the Mumbai Metropolitan Region.
Among the key ongoing projects, MMRDA is working on significant development in the public transportation system by building 14 different metro line projects in Mumbai and MMR.
These metro lines have a total length of 337 km, which is the longest metro network being developed at the same time by a single development agency anywhere in the world.
