Mumbai Metro-3 project faces cash crunch
RAILWAYS & METRO RAIL

Mumbai Metro-3 project faces cash crunch

The long delayed Mumbai Metro 3 project from Cuffe Parade to SEEPZ is now facing a major cash crunch.

Suzuki Satoshi, the Japanese ambassador to India, wrote to Chief Minister Uddhav Thackeray on February 17, 2021, expressing concerns about an impending cash crunch and significant delay or stagnation for the project.

The suburban collector's decision to hand over the Kanjurmarg plot for the car shed was stayed by the Bombay High Court in December.

According to protocol, the state must first approve the cost escalation proposal and then notify the union ministry of housing and urban affairs of its decision. Japan International Cooperation Agency (JICA) disburses the loan once the centre has cleared it.

The letter said that the issue of the depot's location is resolved and JICA stands ready to consider another loan to support the depot's construction.

The approval of the revision of the total project cost to reflect actual fund requirements, according to a two-page annex note attached to the ambassador's letter, is indispensable for Mumbai Metro Rail Corporation Limited(MMRCL).

The letter stated that it was recognised during JICA's detailed fact finding mission with MMRCL, which took place from December 2020 to January 2021, that there is a real possibility for MMRCL to face fund shortage within the next fiscal year (FY2021) if an additional loan cannot be provided by the end of this fiscal year (FY2020).

MMRCL, the project's implementing authority, has already spent Rs 18,000 crore on the 33.5 km Metro 3 line. About 70% of the work, including 95% of the tunnelling, has been completed. Despite the fact that the metro car shed accounts for only 4% of the project's total cost, the project cannot be completed without it.

Image Source


Also read: Colaba-Bandra-SEEPZ Metro-3 corridor: MMRC achieves 38th breakthrough

Also read: Mumbai Metro 2A, 7 to be fully operational from January 2022

The long delayed Mumbai Metro 3 project from Cuffe Parade to SEEPZ is now facing a major cash crunch. Suzuki Satoshi, the Japanese ambassador to India, wrote to Chief Minister Uddhav Thackeray on February 17, 2021, expressing concerns about an impending cash crunch and significant delay or stagnation for the project. The suburban collector's decision to hand over the Kanjurmarg plot for the car shed was stayed by the Bombay High Court in December. According to protocol, the state must first approve the cost escalation proposal and then notify the union ministry of housing and urban affairs of its decision. Japan International Cooperation Agency (JICA) disburses the loan once the centre has cleared it. The letter said that the issue of the depot's location is resolved and JICA stands ready to consider another loan to support the depot's construction. The approval of the revision of the total project cost to reflect actual fund requirements, according to a two-page annex note attached to the ambassador's letter, is indispensable for Mumbai Metro Rail Corporation Limited(MMRCL). The letter stated that it was recognised during JICA's detailed fact finding mission with MMRCL, which took place from December 2020 to January 2021, that there is a real possibility for MMRCL to face fund shortage within the next fiscal year (FY2021) if an additional loan cannot be provided by the end of this fiscal year (FY2020). MMRCL, the project's implementing authority, has already spent Rs 18,000 crore on the 33.5 km Metro 3 line. About 70% of the work, including 95% of the tunnelling, has been completed. Despite the fact that the metro car shed accounts for only 4% of the project's total cost, the project cannot be completed without it. Image Source Also read: Colaba-Bandra-SEEPZ Metro-3 corridor: MMRC achieves 38th breakthrough Also read: Mumbai Metro 2A, 7 to be fully operational from January 2022

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