Maharashtra Government Approves Bank Guarantees & Loan-Related Sanctions For 4 Projects

Maharashtra Government Approves Bank Guarantees & Loan-Related Sanctions For 4 Projects

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Date of Post : 24 July, 2017

Mumbai: Giving a boost to the Mumbai Metro, the Maharashtra government approved bank guarantees & loan-related sanctions for 4 projects.

The Four Projects Are-

  • Metro 2A ( Dahisar to DN Nagar)
  • Metro 2B ( DN Nagar-Bandra-Mankhurd)
  • Metro 4 (Wadala Ghatkopar Mulund Kasaravadavali)
  • Metro 7 covering (Dahisar East-Andheri East)

The Cost Of These Four Projects are-

  • Metro 4 : Rs 14,549 crore (Approx US$ 2273.28 Million)
  • Metro 2A : Rs 6,410 crore (Approx US$ 1001.56 Million)
  • Metro 2B : Rs 10,986 crore (Approx US$ 1716.56 Million)
  • Metro 7 : Rs 6,208 crore (Approx US$ 970 Million)

The state cabinet also allowed the use of a plot reserved for playground to build an underground station for Metro 3.

More Information:

  • These decisions were cleared in the cabinet meeting held on Sunday, on the eve of the monsoon session of the Maharashtra legislature.
  • The state cabinet approved bank guarantee for Metro 4 being funded by Asian Infrastructure Investment Bank (AIIB).
  • It has further decided to provide a debt sustainability certificate (DSC) to 3 other Metro projects — Metro 2A, 2B and 7 being funded by the Asian Development Bank (ADB).
  • The DSC is mandatory to sanction externally aided projects that are to get funding from multilateral agencies like the ADB & World Bank.
  • The bank guarantees & the debt sustainability certificates from the state government to the Metro projects will help formalise loan agreements for 4 of the Metro corridors with international funding agencies.
  • Only after the loan agreements are inked, one can say the financing of these projects is complete.
  • Also, this will ensure that work on the Metro projects is not held up for want of money.
  • A senior state government official said,“We plan to complete Metro 7 and Metro 2A by the 2019 Assembly elections. While civil work is being funded by the MMRDA, financing for the rolling stock, signaling systems etc is possible only through the loan. So formalising these loan agreements is important for us.”

Metro 3 underground project

  • For the fully underground Metro 3 project, a 554-sqm plot located at Tardeo at present reserved as a playground was required to develop an underground ‘Grant Road’ station.
  • The cabinet approved the proposal speeding up work on the Metro 3 corridor as well.
  • This corridor is likely to be completed by 2020-21.
  • Metro-3 is a 33.5-km long underground corridor that will link Colaba-Bandra-SEEPZ in Andheri (East).
  • The length of the corridor is marked with 27 key stations & except one all its stations will be underground.
  • The cost of the project is Rs 23,136 crore (Approx US$ 3,615 Million).

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