Metro-3 financial model to be ready in two months

After the union minister for urban development S Jaipal Reddy’s announcement that the central government was ready to invest in the third line of Metro, officials of the Mumbai Metropolitan Regional Development Authority (MMRDA) have decided to send a proposal to the Centre on an urgent basis. If things go as per schedule, a detailed financial proposal will be ready within the next two months.

“We have already initiated the process of working out the financial model for the third line. The authority recently gave Louis Berger the contract to carry out a techno-economic feasibility study of the commercial utilisation of underground stations. Since the Centre is keen on the government taking the project ahead, we will now work out the financial model,” Milind Mhaiskar, additional metropolitan commissioner said.
Reddy, during the bhoomipoojan of the second line of Metro, had announced that the central government was ready to invest up to 50% in the third line.

“The Japanese Bank for International Co-operation (JBIC) has already shown keen interest to invest in the project. Japanese companies such as Mitsubishi and Hitachi are considered to be of top quality in underground Metro work. We will also have to work out the model of running the Metro since it will definitely not be a Public Private Partnership (PPP) project,” said Mhaiskar.

“The proposal would need the state cabinet’s final nod. The decision will mostly be taken after the new government is formed in November,” said another senior MMRDA official.