MMRDA can raise 150 Bn loan for twin tunnel work
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MMRDA can raise 150 Bn loan for twin tunnel work

The state government, while categorising the Thane-Borivli underground tunnel project as a Vital Urban Transport Project, has authorised Mumbai Metropolitan Region Development Authority (MMRDA) to secure loans from bilateral or multilateral financial institutions up to Rs 150 billion at a favourable interest rate.

According to the government resolution (GR), "The government has sanctioned Rs 24.17 billion as an interest-free subordinate loan for the project. This sum comprises Rs 11.44 billion from the state government, Rs 5.72 billion as 50% of the central government's contribution, and Rs 7 billion allocated for land acquisition." The 11.85 km project, which includes 10.25 km for tunnels and 1.60 km for connecting roads, will feature 3+3 lanes between Thane and Borivali.

The project's estimated cost is Rs 188 bilion. MMRDA's contribution to this endeavour will be Rs 13.50 billion. The financial model for the project entails a 20% contribution and 80% loans, as approved by MMRDA and the state government. The GR affirms, "The government has empowered MMRDA to procure loans from bilateral/multilateral financial institutions up to Rs 15,071 crore at a competitive interest rate. The state government will not bear responsibility for the repayment of the principal, interest, or any associated charges."

It further emphasised, "MMRDA must ensure that no additional financial burden beyond the approved amount is imposed on the state government. The obligation for loan repayment, including interest, rests with MMRDA. The state government will not assume any financial responsibility."

The GR also stipulated, "MMRDA must guarantee that any cost escalations due to unforeseen circumstances are addressed without placing additional financial liability on the state government."The GR declares the project a "Vital Urban Transport Project" and a "Key Infrastructure Project" under pertinent laws. If necessary, the government has granted permission to establish a Special Purpose Vehicle for the project.

The state government, while categorising the Thane-Borivli underground tunnel project as a Vital Urban Transport Project, has authorised Mumbai Metropolitan Region Development Authority (MMRDA) to secure loans from bilateral or multilateral financial institutions up to Rs 150 billion at a favourable interest rate. According to the government resolution (GR), The government has sanctioned Rs 24.17 billion as an interest-free subordinate loan for the project. This sum comprises Rs 11.44 billion from the state government, Rs 5.72 billion as 50% of the central government's contribution, and Rs 7 billion allocated for land acquisition. The 11.85 km project, which includes 10.25 km for tunnels and 1.60 km for connecting roads, will feature 3+3 lanes between Thane and Borivali. The project's estimated cost is Rs 188 bilion. MMRDA's contribution to this endeavour will be Rs 13.50 billion. The financial model for the project entails a 20% contribution and 80% loans, as approved by MMRDA and the state government. The GR affirms, The government has empowered MMRDA to procure loans from bilateral/multilateral financial institutions up to Rs 15,071 crore at a competitive interest rate. The state government will not bear responsibility for the repayment of the principal, interest, or any associated charges. It further emphasised, MMRDA must ensure that no additional financial burden beyond the approved amount is imposed on the state government. The obligation for loan repayment, including interest, rests with MMRDA. The state government will not assume any financial responsibility. The GR also stipulated, MMRDA must guarantee that any cost escalations due to unforeseen circumstances are addressed without placing additional financial liability on the state government.The GR declares the project a Vital Urban Transport Project and a Key Infrastructure Project under pertinent laws. If necessary, the government has granted permission to establish a Special Purpose Vehicle for the project.

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