Plan panel wants private funding, MMRDA not keen

Even as the city’s development authority is in the final stages of securing funds for the costly Colaba-Bandra-Seepz Metro, the Planning Commission has suggested altering the decided funding pattern for the project and bringing in private participation for the rolling stock. 

The Planning Commission has recommended securing around Rs 1,700 crore from private players to cover the cost of rolling stock for the 33.5-km long Metro line. Pegged at Rs 24,500 crore, the fully-underground Colaba-Bandra-Seepz Metro will be one of the most expensive transport infrastructure projects of Mumbai. However, the Mumbai Metropolitan Region Development Authority (MMRDA) is opposed to the suggestion of bringing in private funding for any component and is, at the most, willing to consider privatising the operations of the fully-underground Metro corridor. 

“If we get a private player, it will mean the party will get complete control of the rolling stock. If we want changes in some specifications, it may become a difficult and tedious task. We will write to the Planning Commission with our justification,” said PRK Murthy, head of transport and communication, MMRDA.

Murthy said the MMRDA was considering privatising the operations of the Metro corridor, thus saving the development authority Rs 400-500 crore a year. 

“Privatising operations would be beneficial because otherwise we will have to hire huge teams for the task,” he added.

Another senior MMRDA official said the present financial model has gone through all the departments concerned, such as the Ministry of Urban Development and the Department of Economic Affairs, and is now with the Japan International Cooperation Agency (JICA), which is providing a loan for the project. 

“If we alter the funding pattern now, we will have to repeat the whole process,” he said.

As per the model decided for financing the Metro, which would be the city’s first underground corridor, the Central and state governments are to contribute 15 per cent each. JICA will provide a loan for covering 50 per cent of the project cost at an interest rate of 1.4 per cent payable over 30 years. The MMRDA is also likely to get around seven per cent of the project cost as financing for three stations from the Mumbai International Airport Ltd and two more stations under a Central scheme meant to bolster exports.