MMRDA to appoint SBI Capital Markets raise funds of Rs 60k cr

The Mumbai Metropolitan Regional Development Authority (MMRDA) will appoint SBI Capital Markets Limited to raise Rs 60,000 crore funds for the ongoing and upcoming infrastructure projects.

It was decided in October during the 151st meeting of MMRDA, which was chaired by the Minister of Urban Development, Ekanath Shinde.

As per the estimated cash flow of MMRDA, it will get good revenue from its projects and other sources of income in the next 25 years. Looking at its non-receipt sources of revenue and its actual period of project implementation, in the next five years, it will require Rs 60,000 crore, an official told the media.

According to an official, it was approved during the meeting to raise funds of Rs 60,000 crore for the projects. MMRDA approved the government guarantee and other guarantees required for raising funds for the project.

SBI Capital Markets will be appointed for studying various loan options required for raising funds and appointed as Transaction or Project Advisory Services on Single Source Basis. As per the work mentioned in the proposal for raising funds, SBI Capital Markets will be paid 0.2% as a fundraising fee from the total loan amount. MMRDA can also appoint three expert staff for fundraising through outsourcing and take further steps required for the implementation of the project.

The capital expenditure of the MMRDA's infrastructure projects is approximately Rs 1,74,940 crore.

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