Shops to fund 5% Metro cost

In order to fund the over Rs24,000crore Colaba-Bandra-Seepz stretch of the Metro rail project, the Mumbai Metropolitan Region Development Authority (MMRDA) is planning to recover around 5% of the project cost through commercial exploitation of the real estate to be developed underground.

The 33.5-km stretch on which the MMRDA plans to begin work next year is expected to cost around Rs24,430crore (at September prices). The route, which officials say will take the load off the overburdened suburban railway network due to its alignment, will be completely underground and wind its way to Seepz from Colaba via the business hub of the Bandra-Kurla Complex (BKC).

The MMRDA is also planning to raise up to 50% of the project cost as loans from the Japan International Cooperation Agency (JICA), and the rest from equity infusion by the state and the central governments, and from subordinated debts. Some of the expenditure may be met by the creation of underground real estate like shops and advertising platforms, a senior MMRDA official told DNA.

The MMRDA plans to raise around Rs700 crore, subject to a cap of 5% of the project cost.

When asked about the upper limit, the official said, “Since it’s expensive to create underground real-estate in Mumbai, the MMRDA is also in talks with the MIAL for funding three stations on the route in the periphery of the airport.”

This Metro line will connect Cuffe Parade, Nariman Point, Fort, Girgaon, Mahalaxmi, Worli, BKC, the domestic and international airports and Seepz. The fully air-conditioned system will cut travel time significantly by half, with the distance being covered in just 50 minutes as compared to the 100 minutes by car or 80 minutes by the local train service, MMRDA has claimed.