The Government of India, the Government of Maharashtra, Mumbai Railway Vikas Corporation signed a loan agreement with the Asian Infrastructure Investment Bank (AIIB) to improve the network capacity, service quality, and safety of the suburban railway system in Mumbai under the Mumbai Urban Transport Project-III. The project aims to increase network capacity in the region with the reduction in journey time and fatal accidents of commuters and also help in reducing carbon emission.
The total estimated cost is $997 million, out of which $500 million is the loan amount offered by AIIB, $310 million to be invested by the Government of Maharashtra, and $187 million by the Ministry of Railways.
The loan agreement was signed between Shri Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India and Shri Sanjay Kumar, Chief Secretary from Government of Maharashtra, Shri R. S. Khurana, Chief Managing Director of the Mumbai Rail Vikas Corporation and Shri Rajat Misra, Director General (Acting), Investment Operations, AIIB. It has a 5-year grace period and a maturity of 30 years.
“In line with our Transport Sector Strategy, the Mumbai Urban Transport Project-III will also help in reducing carbon emissions by shifting passengers away from higher-carbon road transport towards efficient and convenient rail-based mobility. In addition, female passengers will benefit from improved safety and quality of service,” AIIB Vice President D. J. Pandian said.