Subsidiary Finance Agreement signed among MMRDA, MRVC and Government of Maharashtra

By Pallavii Pitale

A Subsidiary Finance Agreement has been signed recently among the Government of Maharashtra, Mumbai Metropolitan Region Development Authority (MMRDA) and Mumbai Railway Vikas Corporation (MRVC) in order to make speedy implementation of infrastructural projects in the Mumbai Metropolitan Region.

This agreement would  facilitate ensured timely funding to the Mumbai Urban Transportation Project – II and for the other projects under MRVC. MMRDA is authorized to provide funding to MUTP-II on behalf of MRVC which would ultimately help in timely completion of the projects undertaken by MRVC.

After successful completion of the Bombay Urban Transport Project in 1984 at a cost of about Rs. 390 million, the MMRDA had formulated a multi modal project MUTP to bring about improvement in traffic and transportation situation in the MMR with the assistance of the World Bank.

MUTP envisages investment in suburban railway projects, local bus transport, new roads, bridges, pedestrian subways and traffic management activities. MRVC, a joint venture of Railways and Government of Maharashtra, is set up for implementation of rail projects under MUTP and other projects of Railways in the MMR.

In order to further improve the suburban railway services extremes of network and operations, Government of Maharashtra and Ministry of Railways have approved the project. The Project Agreement for MUTP Phase-II was signed recently in July 2010 amongst World Bank, State Govt. of Maharashtra and MRVC. There are 11 projects under MUTP-II worth Rs 5,300 crores with World Bank loan of about Rs 1,910 crore.