+
MMRDA seeks Rs 200 bn loans for Mumbai infrastructure projects
RAILWAYS & METRO RAIL

MMRDA seeks Rs 200 bn loans for Mumbai infrastructure projects

The Mumbai Metropolitan Region Development Authority (MMRDA) is embarking on a quest for Rs 200 billion in loans to fuel the implementation of a diverse array of infrastructure projects across the sprawling Mumbai Metropolitan Region. With an expenditure estimate of Rs 287.05 billion earmarked for the current fiscal year (2023-24), MMRDA's ambitious agenda encompasses pivotal initiatives like Metro corridors, the Mumbai Trans Harbour Link, Versova-Vasai Sea Bridge, and the subterranean route connecting the Eastern Freeway and Marine Drive.

Facing the financial strain of monumental projects slated for this decade, MMRDA officials emphasised the necessity of seeking substantial funding. Government sources have disclosed that SBI Capital Markets is tasked with soliciting expressions of interest (EOI) from potential lenders to furnish rupee-denominated debt for MMRDA. SBI Capital will receive 0.25 per cent of the raised amount as a fund-raising fee.

Having secured the state cabinet's endorsement in July 2022 to secure Rs 600 billion in loans, MMRDA will undertake a phased approach to borrowing, commencing with Rs 200 billion. The state will serve as a guarantor for these borrowings, directed towards fueling infrastructural progress within the Mumbai Metropolitan Region.

Recent data from the updated Comprehensive Transport Study - 2, published in October 2021, indicates that MMRDA necessitates Rs 5000 billion over a two-decade span to realise multifaceted infrastructure undertakings, encompassing Metros, exclusive bus lanes, cycling lanes, and more. Encompassing 6,355 sq km, MMR spans across Mumbai, parts of Thane, Palghar, and Raigad districts, with a population of 25 million.

MMRDA, which lacks taxation authority, envisions garnering revenue through land transactions and asset monetization, particularly its Metro network. While anticipating robust cash inflow from diverse revenue streams over the next 25 years, the Rs 600 billion loan ceiling acts as a contingency measure in case of delays or disruptions in revenue generation due to project setbacks.

Assured of its ability to repay loans, MMRDA plans to leverage development charges on residential, commercial, and industrial units, coupled with land monetisation. As real estate ventures, including land sales and FSI transactions, materialise, a windfall awaits MMRDA, reinforcing its financial prospects.

The Mumbai Metropolitan Region Development Authority (MMRDA) is embarking on a quest for Rs 200 billion in loans to fuel the implementation of a diverse array of infrastructure projects across the sprawling Mumbai Metropolitan Region. With an expenditure estimate of Rs 287.05 billion earmarked for the current fiscal year (2023-24), MMRDA's ambitious agenda encompasses pivotal initiatives like Metro corridors, the Mumbai Trans Harbour Link, Versova-Vasai Sea Bridge, and the subterranean route connecting the Eastern Freeway and Marine Drive.Facing the financial strain of monumental projects slated for this decade, MMRDA officials emphasised the necessity of seeking substantial funding. Government sources have disclosed that SBI Capital Markets is tasked with soliciting expressions of interest (EOI) from potential lenders to furnish rupee-denominated debt for MMRDA. SBI Capital will receive 0.25 per cent of the raised amount as a fund-raising fee.Having secured the state cabinet's endorsement in July 2022 to secure Rs 600 billion in loans, MMRDA will undertake a phased approach to borrowing, commencing with Rs 200 billion. The state will serve as a guarantor for these borrowings, directed towards fueling infrastructural progress within the Mumbai Metropolitan Region.Recent data from the updated Comprehensive Transport Study - 2, published in October 2021, indicates that MMRDA necessitates Rs 5000 billion over a two-decade span to realise multifaceted infrastructure undertakings, encompassing Metros, exclusive bus lanes, cycling lanes, and more. Encompassing 6,355 sq km, MMR spans across Mumbai, parts of Thane, Palghar, and Raigad districts, with a population of 25 million.MMRDA, which lacks taxation authority, envisions garnering revenue through land transactions and asset monetization, particularly its Metro network. While anticipating robust cash inflow from diverse revenue streams over the next 25 years, the Rs 600 billion loan ceiling acts as a contingency measure in case of delays or disruptions in revenue generation due to project setbacks.Assured of its ability to repay loans, MMRDA plans to leverage development charges on residential, commercial, and industrial units, coupled with land monetisation. As real estate ventures, including land sales and FSI transactions, materialise, a windfall awaits MMRDA, reinforcing its financial prospects.

Next Story
Technology

Six ways a smarter workflow leads to faster, more accurate bids

In today’s fast-paced civil construction environment, estimators need more than just solid numbers. They need smart, streamlined processes. This article explores six key ways connected workflows can transform the estimated approach, help in minimising risk, move faster, and improve accuracy. By integrating tools, data, and teams, one can produce stronger bids with less rework, fewer surprises, and more confidence. As an estimator, the job goes beyond producing numbers. They are responsible for delivering bids that are fast, accurate, and built to win. In today’s civil construction ind..

Next Story
Real Estate

Experion Launches Women-Only Co-Living Project in Greater Noida

Experion, part of Singapore-based AT Capital Group, has launched its first co-living space under its managed rental housing brand, VLIV, in Greater Noida. The all-women residence features 730 twin-sharing beds with a strong focus on safety, comfort, and well-being. VLIV has committed a $300 million investment to create a structured, service-led rental housing ecosystem in India. The brand aims to scale up to 20,000 beds in the next few years, with a long-term target of 100,000 beds nationwide. “India’s rental housing is fragmented. VLIV is our way of building long-term, dependabl..

Next Story
Infrastructure Urban

Officine Maccaferri Acquires CPT to Bolster Tunnelling Tech

Ambienta’s platform company, Officine Maccaferri S.p.A., has acquired CPT Group, a leading Italian developer of robotic prefabrication systems and digital control technologies for mechanised tunnelling. The move positions Maccaferri as a global player in integrated tunnelling solutions, blending traditional and advanced mechanised systems. Based in Nova Milanese, CPT serves major global contractors across Europe, Southeast Asia, and Australia. The company offers robotic prefabrication (Robofactory), productivity-monitoring software for Tunnel Boring Machines (TBMs), and eco-designed spa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?