Govt, ADB sign US$926m loan deal for Mumbai metro

The agreement, which marks the single largest infrastructure project funding in ADB’s history, will finance two lines totaling 58 km, along with 63 six-car trains, signaling and safety systems, among others

March 1, 2019

Being built in three phases, when completed in 2025, Mumbai Metro will cover over 275 km and over 200 station; The project is key to decongesting one of the world’s largest urban centres

City metro projects with total track length of around 600 km are operational in 12 Indian cities, while five projects are in the process of being built and 10 new projects are in planning stage

Foreign agencies such as Japan International Cooperation Agency, European Investment Bank and the French Development Agency have provided financial support for Indian metro projects

Companies such as South Korea’s Hyundai Rotem, Canada’s Bombardier, Alstom of France, CSR Nanjing of China, Siemens of Germany and India’s BEML are major players in the industry

The Asian Development Bank (ADB) and Government of India on March 1 signed a US$926 million loan agreement to support work on two lines of the Mumbai metro rail system. Mumbai metro project is key to decongesting one of the world’s largest urban centres. The agreement, which marks the single largest infrastructure project funding in ADB’s history, will help finance lines 2A (Dahisar to DN Nagar), 2B (DN Nagar–Bandra–Mandale), and 7 (Dahisar [East] to Andheri [East]), totaling 58 km. Being built in three phases, when completed in 2025, Mumbai Metro will cover over 275 km and over 200 station.

ADB’s loan will also cover funding for 63 six-car trains, signaling and safety systems, while helping set up a new dedicated organization to manage the entire metro network in Mumbai. Once operational by the end of 2022, an estimated 2 million passengers a day will use the two new lines. It will reduce vehicular emissions by about 166,000 tonnes a year. The Mumbai Metropolitan Region Development Authority (MMRDA) will implement the project. Railway is the primary means of transport in Mumbai, where the suburban network totals almost 400 km and carries more than 7.5 million passengers a day.

Mumbai, with a population of about 12 million, is the capital of the state of Maharashtra and renowned as the financial capital of India. Maharashtra accounts for about 15 per cent of India’s gross domestic product, about 40 per cent of which is generated from greater Mumbai. Recognizing the transportation challenges, the government has proposed to build 12 metro lines. ADB is also helping MMRDA improve last mile connectivity by piloting electric vehicles and non-motorized transport at stations. The project marks ADB’s first co-financing with Shanghai-based, BRICS-controlled New Development Bank (NDB).

Meanwhile, NDB will provide US$260 million toward the metro project. City metro projects with total track length of around 600 km are operational in 12 Indian cities, while five projects are in the process of being built and 10 new projects are in planning stage. Foreign agencies such as the Japan International Cooperation Agency, European Investment Bank and French Development Agency have provided

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