According to MMRDA officials, loan amount sourced via AIIB will only be used for buying Metro trains (rolling stocks) and the civil construction will be self financed by MMRDA from its kitty.
The Metro-4 corridor connecting Mumbai and Thane, known as Wadala-Thane-Kasarvadavli corridor, may get an increased loan amount of around Rs 3,900 crore from the Asian Infrastructure Investment Bank (AIIB).
Representatives from Mumbai Metropolitan Region Development Authority (MMRDA) are likely to have a round of discussion with AIIB as its officials are scheduled to visit the city for its third annual meeting starting Monday.
The AIIB has already given an in principle approval for funding the Rs 14,000 crore project but several modalities relating to the interest rates of loan and several terms and conditions for the loan need to be worked out. Discussions in the coming week is said to be on the lines of the same in order to finalise a loan agreement in the coming days.
According to MMRDA officials, loan amount sourced via AIIB will only be used for buying Metro trains (rolling stocks) and the civil construction will be self financed by MMRDA from its kitty.
RA Rajeev, Metropolitan Commissioner told DNA, "We are going to have discussions with AIIB representatives in regards to the interest rates being charged for the loan. We feel that the interest rates to be a little higher, and discussions in regards to bring down the interest rates for the loan will be undertaken."
According to MMRDA officials, the interest rate being proposed by AIIB is around 1.90 per cent to 2.35 per cent, however, we are trying to bring down the interest rates considering multilateral banks funding are supposed to be for long term with lesser interest rates.
Meanwhile, the construction work in form of soil testing and installations of barricades has already started for Metro-4 corridor. Several companies like Reliance Infrastructure, Tata Projects and couple of international firms are involved in civil construction of Metro-4 corridor.
Similarly, construction for DN Nagar-Mandale Metro-2B also started recently for which the loan is being sought from Asian Development Bank (ADB) that has given in principle nod for the same. ADB has also funded for rolling stocks of Dahisar-DN Nagar Metro-2A and Dahisar East- Andheri East Metro-7 corridor.
Further, the MMRDA in its announced its budget of Rs 12,157 for 2018-19 allocated Rs 4,700 crore was for seven Metro projects which is highest in its recent past few years. In 2017-18, MMRDA had allocated Rs 3,273 crore for Metro projects followed by Rs 2,151 crore for Metro projects in 2016-17.
The highest allocation for Metro projects in 2018-19 was due to several Metro projects being at construction stage and several projects for which construction will start. For around 10 proposed Metro corridors in Mumbai Metropolitan Region, MMRDA will need around Rs 84,528 crore approximately.
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