On August 24, 2020, a quartet loan agreement was inked between the Government of India, the Government of Maharashtra, Mumbai Railway Vikas Corporation (MRVC) and the Asian Infrastructure Investment Bank (AIIB) for Mumbai Urban Transport Project-III. The agreement aims to improve the network capacity, reduction in journey time and fatal accidents of commuters, service quality and safety of the suburban railway system in Mumbai, Maharashtra.
- The total estimated cost of the project is $997 million, of which $500 million will be financed by the AIIB, $310 million by the Government of Maharashtra and $187 million by the Ministry of Railways. The loan from the AIIB has a 5-year grace period and a maturity of 30 years.
- The loan agreement was signed by Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India, Sanjay Kumar, Chief Secretary on behalf of the Government of Maharashtra, R. S. Khurana, Chief Managing Director on behalf of the MRVC and Rajat Misra, Director General (Acting), Investment Operations on behalf of the AIIB.
Key Points:
– Notably, 86% of Mumbai commuters rely on public transport.
-Among major beneficiaries of Mumbai Urban Transport Project-III is 22% female passengers who will benefit from improved safety and quality of service.
-This project also helps in reducing carbon emissions by shifting passengers away from higher-carbon road transport towards efficient and convenient rail-based mobility.
Recent Related News:
On July 7, 2020 AIIB released USD 50 million in the first tranche of assistance to L&T Infrastructure Finance Ltd (LTIF), to fund renewable Energy Projects in the country. The released amount is part of a sanctioned USD 100 million External Commercial Borrowing (ECB) loan.
About Asian Infrastructure Investment Bank (AIIB):
President– Jin Liqun
Headquarters– Beijing, China
About Maharashtra:
Chief Minister (CM)– Uddhav Bal Thackeray
Capital– Mumbai
Governor– Bhagat Singh Koshyari
