Maharashtra urban development department releases subordinate loans for Metro projects

Mumbai: The state Urban Development (UD) department on Friday released subordinate loan instalments for several metro projects in Mumbai Metropolitan Region (MMR) including Mumbai Metro Rail Line-6 (Swami Samarth Nagar - Jogeshwari - Vikhroli) project, Mumbai Metro Line-5 (Thane-Bhiwandi-Kalyan), Metro Line-6 (Swami Samarth Nagar-Jogeshwari-Vikhroli), Metro Line-2A (Dahisar (E) to DN Nagar), Metro-2B (DN Nagar- Mandale), Metro Line-4 (Wadala-Ghatkopar-Thane-Kasarvadavali) 4A (Kasarvadavali to Gaimukh) and Metro Line-7 (Andheri (East) to Dahisar (East)) among others.

Similarly, subordinate loans were released for Metro Line-9 Dahisar to Mira-Bhayandar, Line-7A- Andheri-CSMIA and Mumbai Metro Line-12 (Kalyan - Taloja).

UD also released its financial contribution instalment of Rs 94 crore to Mumbai Railway Vikas Corporation for Mumbai Urban Transport Project Phase-3A.

“In accordance with the state govt’s share in the project, on July 27, 2023, the state govt, BMC, MMRDA and CIDCO, Navi Mumbai Municipal Corporation signed a financial agreement with Mumbai Railway Vikas Corporation. The Mumbai Urban Transport Project Phase-3A (MUTP-3A) project will receive a direct grant of Rs. 1887.15 crore in the first 4 years and Rs. 7498.47 crore in the subsequent 4 years, totaling Rs. 9385.62 crore. A provision of Rs. 471 crore has been budgeted in the financial year 2026-27. Out of this, Rs. 94.20 crore is being released,” a govt resolution (GR) said.

“Amounts are being disbursed by the state govt as subordinate loan assistance through MMRDA towards Central Tax (50%) and State/Local Tax (100%) and land cost.

“The amount disbursed should be recovered from MMRDA after repayment of the principal loan taken from the external financial institution for the project. If the govt decides to charge interest on the loan assistance amount in future, the loan along with its interest amount should be repaid in one installment after the principal loan is repaid,” the GR said.

Subordinate loan instalments were also released for lines like Metro Line-12 (Kalyan - Taloja).