Maharashtra Govt To Fund 50% Of 268 New AC Rakes For Mumbai Suburban Rail Services, Skips Loan Route

Mumbai: In a major development, the state has decided to exclude the component of purchasing new AC rakes for Mumbai Suburban Services from the Mumbai Urban Transport Project III and III-A. Instead of availing a loan, the state will bear 50 per cent of the cost, amounting to Rs 2413 crore, for purchasing 268 new AC rakes by disbursing the amount from its annual budget.

Earlier, while signing the agreement for the implementation of the MUTP III and 3A with the central government, the state was supposed to raise the required funds through a loan. For the MUTP III, the state and the centre have raised Rs 3500 crore through a loan from the Asian Infrastructure Investment Bank (AIIB), which will be repaid on a 50:50 sharing basis. For the MUTP III-A, Rs 33,690 crore needed to be raised equally by the centre and the state.

Now, the state has, in consultation with the central government, decided to exclude the part of procuring new AC rakes by availing loans and instead will bear 50 per cent of the total cost of the 268 AC rakes, sources in the know of the developments told the FPJ. The state can make the required provision in its annual budget for the coming years, as the new ranks will take some time, sources said.

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Approval Given

On Tuesday, the cabinet committee on infrastructure gave its approval, and the proposal was forwarded to the central government for necessary approval. It might take a few months, and the central government will also make available its share, added the sources. The total cost of the MUTP III-A, approved by the state government in 2018, is huge considering the gamut of the projects, which includes development of new stations, new rakes, 3rd and 4th line between Kalyan and Badlapur, 5th and 6th line between Borivali and Virar, 4th lane between Kalyan and Asangaon, extending the harbour line between Goregaon and Borivali, remodelling of Kalyan Junction to separate the main line and the suburban line etc.

The cost of the MUTP III-A is expected to be shared by Brihanmumbai Municipal Corporation (BMC), Navi Mumbai Municipal Corporation, CIDCO and MMRDA as well. The project has achieved just 6 per cent physical progress to date. On the other hand, the MUTP III has achieved 42 per cent, and the MUTP II has achieved 87 per cent physical progress.