In a pivotal decision, the Maharashtra state cabinet has granted approval for an unconditional government guarantee, facilitating the procurement of loans amounting to Rs 24,000 crore for the Mumbai Metropolitan Region Development Authority (MMRDA).
This significant financial boost is earmarked for diverse infrastructure enhancement initiatives within the Mumbai Metropolitan Region (MMR). According to a government press release, the approved government guarantee encompasses a Rs 12,000 crore loan from Rural Electrification Corporation (REC) and an additional Rs 12,000 crore loan from Power Finance Corporation (PFC). REC, extending a loan of Rs 30,593 crore for Metro Line 8, had previously received a government guarantee for Rs 12,000 crore. The recent cabinet approval paves the way for an additional guarantee of Rs 12,000 crore. Meanwhile, PFC’s sanctioned loan of Rs 50,301 crore, allocated for the tunnel from Orange Gate Freeway to Marine Drive connecting to the coastal road, along with other infrastructure ventures, received the nod for a Rs 12,000 crore government guarantee.
In tandem with these approvals, the cabinet has greenlit a request from the MMRDA to secure a Rs 850 crore loan and a grant of Rs 19 crore from KFW, an esteemed international financial institution based in Germany. This funding will be directed towards the Mumbai Regional Urban Infrastructure Improvement Programme, further fortifying the city’s infrastructural landscape.
