The Maharashtra government has approved a financial framework allowing the Mumbai Metropolitan Region Development Authority (MMRDA) to raise international loans against six on-going Metro projects. The move is expected to expedite infrastructure development across key corridors in the Mumbai region.The corridors that will benefit from this funding mechanism include Metro Line 5 (Thane–Bhiwandi–Kalyan), Line 6 (Swami Samarth Nagar–Vikhroli), Line 7A (Dahisar East–Mumbai Airport), Line 9 (Dahisar East–Mira Bhayander), Line 10 (Gaimukh–Shivaji Chowk, Mira Road), and Line 12 (Kalyan–Taloja).According to a recent government resolution, MMRDA will be permitted to secure loans from bilateral and multilateral agencies or other international financial institutions. The loans may be availed on a back-to-back basis or through other appropriate methods, with interest rates expected to be concessional.While the Metro corridors had previously received Cabinet approval, the absence of state-backed guarantees was reportedly hindering access to foreign-assisted funding. The new resolution addresses this by providing contingent liability support from the state, thereby acting as a guarantor in case of default or exceptional circumstances.However, the MMRDA will remain the primary entity responsible for repaying the principal amount, interest, and associated fees. Additionally, the authority will bear any extra costs arising from delays, litigation, or unforeseen issues.“This backing by the state government provides funding certainty and enables us to go ahead with loan arrangements needed for these important infrastructure projects,” an MMRDA official said.The resolution also authorises MMRDA and the Urban Development Department to finalise loan agreements with banks and enter into project and financial agreements with the central government, wherever applicable. These agreements will outline key aspects such as loan tenure, interest payments, and terms of repayment.“The loan process was at an advanced stage, but needed the state to intervene for guarantee and risk mitigation. With this clearance, we are getting closer to arranging the funds and completing project timelines,” the official added.News source: The Indian Express