JICA extends Rs 15,295 crore loan for Mumbai Metro, MTHL, DFC projects

New Delhi, India (Urban Transport News): Japanese financial institution Japan International Cooperation Agency (JICA) on Friday signed loan agreements with the Government of India to fund Rs 15,295 crore for three major rail and road infrastructure projects in India. According to the PTI report, the agency has granted an amount of Rs 2,480 crore for the Mumbai Metro Line 3 project; Rs 8,553 crore for phase 1 of the Dedicated Freight Corridor (DFC) and Rs 4,262 crore for the Mumbai Trans Harbour Link Project.

"For phase 1 of the DFC, Rs 8,553 crore loan comes with the objective to cope up with the increase in India’s freight transport demand by building a new dedicated freight railway system between Mumbai and Delhi," said Katsuo Matsumoto, chief representative of JICA India. He further said that the Western Dedicated Freight Corridor (DFC) project is a crucial part of the Delhi-Mumbai Industrial Corridor (DMIC) initiative of the Government of India.

Under phase 1, a 950-km freight line from Rewari to Vadodara will connect the major cities in Rajasthan, Gujarat, and Haryana has been constructed. The project will help in creating the country’s largest industrial belt in the DMIC area by connecting the industrial parks as well as harbors of the states between Mumbai and Delhi to promote foreign export and direct investment. The loan assistance of Rs 2,480 crore sanctioned for the construction of the Mumbai Metro Line-3 (Colaba-Bandra-SEEPZ) project will help to cope up with the increase in India’s freight transport demand by developing a dedicated freight railway system between Delhi-Mumbai.

The 33.7 km long fully underground metro corridor is planned to link the southern part of Mumbai with the major commercial areas such as the Bandra Kurla Complex, Maharashtra Industrial Development Corporation (MIDC) area, Airport (Domestic and International), SEEPZ as well as the area along the Jogeshwari-Vikhroli Link Road. According to the plan, this metro corridor will be commissioned by the end of 2021. The Mumbai Trans Harbour Link (MTHL) will connect Mumbai with Navi Mumbai and will promote economic development as well as mitigate traffic congestion.

This loan agreement is signed to finance the second tranche by JICA for MTHL. JICA had funded Rs 7,912 crore under the first tranche for which the loan agreement was signed on 31 March 2017.