1. Home
  2. Infrastructure Transport
  3. ROADS & HIGHWAYS
  4. MMRDA to raise Rs 150.71 billion loan for twin tunnel project
MMRDA to raise Rs 150.71 billion loan for twin tunnel project
ROADS & HIGHWAYS

MMRDA to raise Rs 150.71 billion loan for twin tunnel project

16 Oct 2024 2 Min Read CW Team
The Maharashtra government has classified the Thane-Borivali underground tunnel project as a "Vital Urban Transport Project" and authorised the Mumbai Metropolitan Region Development Authority (MMRDA) to raise loans of up to Rs 150.71 billion from bilateral or multilateral financial institutions at competitive interest rates.

According to the government resolution (GR), the state has approved an interest-free subordinate loan of Rs 24.17 billion for the project. This includes Rs 11.44 billion from the state government, Rs 5.72 billion representing 50% of the central government’s contribution, and Rs 7 billion allocated for land acquisition.

The 11.85 km project, consisting of 10.25 km of tunnels and 1.60 km of connecting roads, will provide a 3+3 lane corridor between Thane and Borivali. The total estimated project cost is Rs 188.38 billion, with MMRDA contributing Rs 13.5 billion. Under the financial model approved by MMRDA and the state, 20% of the project will be funded through contributions, with the remaining 80% financed by loans.

The GR specifies that MMRDA will manage loan procurement and repayment independently. "The state government will not bear any responsibility for repaying the principal, interest, or any associated charges," it stated. MMRDA is required to ensure that no financial burden beyond the approved budget is placed on the state government.

The resolution further mandates that MMRDA must address any unforeseen cost escalations internally, without seeking additional state assistance.

Designated a "Vital Urban Transport Project" and a "Key Infrastructure Project," the tunnel initiative may also involve setting up a Special Purpose Vehicle (SPV) if needed, according to the GR. (ET)

The Maharashtra government has classified the Thane-Borivali underground tunnel project as a Vital Urban Transport Project and authorised the Mumbai Metropolitan Region Development Authority (MMRDA) to raise loans of up to Rs 150.71 billion from bilateral or multilateral financial institutions at competitive interest rates. According to the government resolution (GR), the state has approved an interest-free subordinate loan of Rs 24.17 billion for the project. This includes Rs 11.44 billion from the state government, Rs 5.72 billion representing 50% of the central government’s contribution, and Rs 7 billion allocated for land acquisition. The 11.85 km project, consisting of 10.25 km of tunnels and 1.60 km of connecting roads, will provide a 3+3 lane corridor between Thane and Borivali. The total estimated project cost is Rs 188.38 billion, with MMRDA contributing Rs 13.5 billion. Under the financial model approved by MMRDA and the state, 20% of the project will be funded through contributions, with the remaining 80% financed by loans. The GR specifies that MMRDA will manage loan procurement and repayment independently. The state government will not bear any responsibility for repaying the principal, interest, or any associated charges, it stated. MMRDA is required to ensure that no financial burden beyond the approved budget is placed on the state government. The resolution further mandates that MMRDA must address any unforeseen cost escalations internally, without seeking additional state assistance. Designated a Vital Urban Transport Project and a Key Infrastructure Project, the tunnel initiative may also involve setting up a Special Purpose Vehicle (SPV) if needed, according to the GR. (ET)

Next Story
Infrastructure Urban
15 Nov 2024

Shoals' Q3 2024 revenue falls 23.9% due to project delays, supply chain

Shoals Technologies Group, a U.S.-headquartered manufacturer of electrical balance of systems (EBOS) for solar, energy storage, and e-mobility, reported a 23.9% year-over-year (YoY) decline in revenue, which dropped to $102.2 million in the third quarter (Q3) of 2024. This decline was mainly attributed to project delays and supply chain disruptions. The company posted a net loss of $300,000, a significant improvement compared to the $9.8 million net loss in Q3 2023. Adjusted net income was reported at $13.9 million, reflecting a 58.2% YoY decrease. Adjusted EBITDA stood at $24.5 million, a 4..

Read More
Next Story
Infrastructure Energy
15 Nov 2024

FTC Solar sees 67% YoY decline in Q3 revenue from lower volumes

FTC Solar, a U.S.-based provider of solar tracker systems, reported a revenue of $10.14 million in the third quarter (Q3) of 2024, surpassing analyst expectations by $240,680. However, this figure marked a 66.8% year-over-year (YoY) decline compared to the same quarter in 2023, primarily attributed to reduced product volumes. The decline in solar tracker revenue was mainly due to an 82% decrease in the amount of MW produced, which was negatively impacted by delays in customer projects. This was partially offset by an increase in the average selling price (ASP), which led to better pricing an..

Read More
Next Story
Infrastructure Urban
15 Nov 2024

Dilip Buildcon wins bid for BharatNet Phase III broadband project

Dilip Buildcon announced on Tuesday, November 12, that its STL-DBL consortium had submitted the lowest bid for BSNL's BharatNet Phase III broadband connectivity project. The USOF-funded project, which aims to provide middle and last-mile connectivity in Jammu Kashmir and Ladakh, is valued at Rs.1,625.36 Crore. Dilip Buildcon holds a 70.23% stake in the implementation of the project. The project is expected to be completed in three years, and the corporation will secure a 10-year maintenance contract. In recent days, BSNL has awarded several contracts for the BharatNet project. On Monday, No..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

Shoals' Q3 2024 revenue falls 23.9% due to project delays, supply chain
ECONOMY & POLICY
15 Nov 2024

Shoals' Q3 2024 revenue falls 23.9% due to project delays, supply chain

FTC Solar sees 67% YoY decline in Q3 revenue from lower volumes
POWER & RENEWABLE ENERGY
15 Nov 2024

FTC Solar sees 67% YoY decline in Q3 revenue from lower volumes

Dilip Buildcon wins bid for BharatNet Phase III broadband project
ECONOMY & POLICY
15 Nov 2024

Dilip Buildcon wins bid for BharatNet Phase III broadband project

KPIL secures new orders worth Rs 22.73 billion
Real Estate
15 Nov 2024

KPIL secures new orders worth Rs 22.73 billion

NMDC Steel Q2 loss expands to Rs 5.95 bn, income at Rs 15.35 bn
Steel
15 Nov 2024

NMDC Steel Q2 loss expands to Rs 5.95 bn, income at Rs 15.35 bn

Kochi's Valanthakad Island to Get Bus Connectivity with Bridge Completion
RAILWAYS & METRO RAIL
15 Nov 2024

Kochi's Valanthakad Island to Get Bus Connectivity with Bridge Completion

KTR Demands Cancellation of Rs.88 Billion AMRUT Tenders
ECONOMY & POLICY
15 Nov 2024

KTR Demands Cancellation of Rs.88 Billion AMRUT Tenders

Bengaluru-Chennai Expressway: 72km Karnataka Stretch Completed
ROADS & HIGHWAYS
15 Nov 2024

Bengaluru-Chennai Expressway: 72km Karnataka Stretch Completed

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000