The Asian Development Bank (ADB) on Friday signed a $926 million loan agreement with India to operationalise two lines for the Mumbai metro rail system. It is marked as the single largest infrastructure loan ever.
The Ministry of Finance said in a statement that the aim of this loan is to ease the distress of millions of commuters each day and help them provide a cleaner and less congested city.
He further added, "The single largest infrastructure project loan in ADB history approved by the ADB Board on February 26, will help fund lines 2A (Dahisar to D.N. Nagar), 2B (D.N. Nagar-Bandra-Mandale), and 7 (Dahisar-East to Andheri-East), totaling about 58 kilometres."
However, the project will fund 63 six-car trains, signalling and safety systems. It will also help establish a new dedicated metro operations organisation to manage the entire metro network in Mumbai.
The Mumbai Metropolitan Region Development Authority (MMRDA) will implement the project. It will be operational by the end of 2022. Around 2 million passengers in a day will use the two new lines. It will even reduce emissions from vehicles. Carbon dioxide emissions are expected to reduce by 1,66,000 tons a year, said the Ministry.
ADB Country Director Kenichi Yokoyama said, "ADB financing will ease travel for millions of commuters across Mumbai. It will help decongest heavily crowded suburban rail systems and contribute to providing modern, clean and livable urban environment to its citizens."
Mumbai accounts for around 15% of India's GDP, out of which about 40% is generated from the Mumbai metropolitan region. The suburban network of railway totals around 400 km and carries more than 7.5 million passengers a day.
Sameer Kumar Khare, Additional Secretary, Finance Ministry said, "The New Mumbai Metro is an ambitious and truly transformative venture planned by the state government which will contribute to enhance the efficiency of the urban transport network and productivity of India's financial centre."
The government has developed a plan for 12 metro lines with a total length of 276 km. Line 1, completed in 2014 on a public-private partnership model. It carries about 4 lakh passengers a day and has reduced travel time along its east-west route from 71 minutes to 21 minutes.
Besides, ADB is also assisting MMRDA to improve last mile connectivity by piloting electric vehicles and non-motorised transport at select stations.
Interestingly, the project also marks ADB's first co-financing with the Shanghai-based New Development Bank. It will provide $260 million toward the metro systems project. The MMRDA will implement civil works and other related components for the lines 2A, 2B and 7.
