Agency approaches Japanese Cabinet for final nod on funds

After the Central government gave its final clearance for the 22-km long Mumbai Trans-Harbour Link (MTHL) Sewri and Nhava (Chirle), the Japanese Cooperation Agency (JICA) has now formally approached the Japanese Cabinet for the final approval on funding the Rs 17,500 crore project.

Chief minister Devendra Fadnavis said, “JICA has already given final nod for funding the project. However, it needs to get clearance from the Japanese government and its Cabinet. After the final clearance on January 27 this year, JICA has moved to the Japanese government for the approval.

It was reported by The Asian Age, on February 5, that MMRDA commissioner U.P.S. Madan had in a letter to principal secretary of state ministry of industries had stated that MMRDA has approached JICA to grant Rs 15,000 crore to fund the project of MTHL for which JICA is trying to get clearances from the government of Japan and Japanese Cabinet.

Commenting on this Mr Fadnavis said, “Everything is on track and only a final approval to pledge the agreement is needed and the same is likely to be cleared by the Japanese ministry within the end of February.”

JICA has assured to fund 80 per cent of the project cost of Rs 17,500 crore and the remaining 20 per cent will be made available by the Centre and state. “The state government was very keen on signing the pledge agreement for the same during the scheduled Make In India event from February 13 to 18 at Bandra-Kurla Complex (BKC). But as the procedure of JICA is quite lengthy it is now expected to sign it by month end,” said a senior MMRDA official.

Within time, the cost of the project has been increased from Rs 4,000 crore in 2005 when the Maharashtra State Road Development Corporation (MSRDC) to Rs 11,000 crore in 2011. However, in 2016 the cost of the project is expected to go up by Rs 7,500 crore as MMRDA will have to spend additional amount of Rs 300 crore on Environment Management Plan (EMP) and amount of '80-100 crore will be spend on rehabilitation of the fishermen who will affected by the project. And around Rs 100 crore will be spend for widening the bridge by 18 metres which will be provide an additional lane for emergency with other six lanes for general use.

The state government and JICA are set to sign the formal agreement on the loan amount in March and MMRDA also plans to tenders for the same by March itself.