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Maharashtra's cabinet recently greenlit a INR 36,000 crore state guarantee to help the Mumbai Metropolitan Region Development Authority (MMRDA) secure loans from international lenders. This move paves the way for Lines 5, 6, 9, 10, 11 and a 3.3 km underground extension of Line 7 to glide ahead, with elevated and underground sections in play. While the state acts only as guarantor, MMRDA will manage full repayment, including interest. The guarantee ensures smooth tendering and shields against delays or cost overruns. Ultimately, this step drives the vision for a 300?km metro network aimed at de-congesting suburbs and linking key areas like the airport.
The Maharashtra government has approved a loan guarantee of INR 36,000 crore for six crucial metro rail corridors in the Mumbai Metropolitan Region, ensuring that MMRDA can raise funds from major international financial institutions to complete these strategically important transit projects. The proposal was cleared by the state cabinet earlier this week, marking a significant push in Mumbai's long-term transit infrastructure roadmap. Advertisement
The loan guarantee, while not a direct loan, will allow MMRDA to approach global institutions such as the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) to secure project-specific financing. The state government will act as a guarantor, while MMRDA will bear full responsibility for repaying the loans, including principal amounts, interest, and associated charges. Officials stated that this guarantee mechanism is essential for lenders and will streamline tendering processes, allowing for timely implementation without delays or escalations in project costs.
The guarantee covers the following metro lines:
Metro Line 5 (Thane - Bhiwandi - Kalyan)
Metro Line 6 (Swami Samarth Nagar - Jogeshwari - Vikhroli - Kanjurmarg)
Metro Line 9 (Dahisar East - Mira Bhayandar)
Metro Line 10 (Gaimukh - Shivaji Chowk, Mira Road)
Metro Line 11 (Wadala - CST)
A 3.3-km underground double-decker extension of Metro Line 7 from Gundavali to Chhatrapati Shivaji Maharaj International Airport via Marol
These corridors are in various stages of construction and pre-construction planning. Metro Lines 5 and 6 are particularly vital, as they serve some of the most congested parts of the eastern and central suburbs. Line 9 connects western suburbs to the rapidly developing Mira-Bhayandar region, while Lines 10 and 11 aim to bridge north Mumbai with the southern business district. The Line 7 extension, meanwhile, is expected to significantly improve airport access, with a direct underground link from the city's western suburbs to the international terminal.
The government's support comes at a critical juncture, as MMRDA pushes to accelerate construction timelines amid rising costs and funding gaps. By acting as a financial guarantor, the state is helping the agency maintain fiscal credibility with overseas lenders, which will facilitate smoother financial closure for these projects.
Notably, the loan guarantee was needed due to the high combined estimated cost of these corridors, which collectively exceed INR 36,000 crore. The state's assurance will ensure that construction activities especially those requiring tunnel boring, land acquisition, and viaducts do not get stalled due to financing issues.
As of now, several of these projects are already under development, with groundwork and civil construction underway on key stretches. Others, such as Lines 10 and 11, are in advanced tendering or clearance stages. Once completed, these corridors are expected to reduce traffic load on arterial roads, lower commuting time, and offer seamless multi-modal connectivity with suburban rail, roads, and bus transport systems.
This initiative aligns with the larger goal of achieving a 300-km metro network in the Mumbai Metropolitan Region by the end of this decade. According to senior urban development officials, the integrated metro grid will cater to millions of daily commuters, enabling faster and more sustainable urban mobility across the expanding metropolitan area.
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