The department has also asked the authority to look for other options of a financial model, which may include aid from international agencies.
The department of economic affairs has rejected the demand of the Mumbai Metropolitan Region Development Authority (MMRDA) to provide viability gap funding (VGF) for the third line of metro between Colaba and Bandra.
The department has also asked the authority to look for other options of a financial model, which may include aid from international agencies.
MMRDA metropolitan commissioner Ratnakar Gaikwad said the authority might not be able to construct the third line on a Public Private Partnership (PPP) model. “We may be forced to adopt either a direct contract method like the Delhi metro or go for a combination of both PPP as well as direct contract such as the Delhi Metro Rail Corporation’s (DMRC) airport route,” said Gaikwad.
This also means that the role played by either the World Bank or the Japanese International Co-operation Agency (JICA) will now be crucial. “Both the agencies are keen on funding the third line since the expenses required are huge. If any of the agency bags the third line, it will definitely flaunt it,” added Gaikwad.
Sources in the authority said the centre had gone back on its words. “Earlier, the centre was saying that they were ready to fund part of the viability. We have tried reducing the VGF by checking for underground commercial development around the station areas, which has also failed. Now it will depend on WB or JICA’s role which will decide the fate of the third line,” added an official.
The third line initially was planned completely underground from Colaba to Bandra. However, fearing heavy viability gap, it was changed to partially underground from Colaba to Mahalaxmi and then elevated till Bandra.
As per the DMRC airport model, the civil works such as the pillars and the stations are to be constructed by the authority, while the rolling stock (rakes) and other operational activities are carried out under the PPP model.
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