Even as Prime Minister Narendra Modi is all set to launch big-ticket infrastructure projects later this month, the funding for the projects has hit a roadblock.
PM Modi will on December 24 launch the much-delayed Mumbai Trans Harbour Link project. The Mumbai Metropolitan Region Development Authority (MMRDA) has floated pre-qualification bids for the project, which is expected to cost Rs17,750 crore. While the Japan International Cooperation Agency (JICA) has agreed to fund 80% of the total cost of the 22-km link between Sewri and Nhava, the state is yet to ink the crucial loan agreement with JICA.
Similar is the case with Metro 2B line connecting DN Nagar and Mankhurd. The Asian Development Bank (ADB) has assured partial funding for Metro 2B, which is estimated to cost Rs10,970 crore.
According to senior government officials, the state is not willing to stand guarantor for the funds the Mumbai Metropolitan Region Development Authority (MMRDA) plans to borrow for big-ticket infrastructure projects, as it would add to its burden. More info