No funds for big infrastructure works

It has emerged that the Mumbai Metropolitan Region Development Authority has no funds to execute its major infrastructure projects such as the 22-km-long Mumbai Trans Harbour Link (MTHL).

This has come to light a day after chief minister Devendra Fadnavis on Wednesday pulled up MMRDA officials for the tardy pace at which projects such as the MTHL and the two elevated metro corridors in the city were progressing.

In a communication letter to principal secretary of state ministry of industries, dated February 2, 2016, MMRDA commissioner U.P.S. Madan has stated, “We have approached the Japanese International Cooperation Agency (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. However, it seems very difficult at this moment.”

In a review meeting which took place in the CM’s war room, Mr Fadnavis took a look at the progress of all the major projects. Mr Fadnavis expressed displeasure over the delay in projects and asked officials to maintain deadlines, so as to avoid cost escalation later.

For example, in the case of MTHL, the estimated cost of the project was Rs 11,000 crore in 2011 which had gone up to Rs 17,000 crore. Of this, the MMRDA expects JICA to grant Rs 15,000 crore and the rest to be funded by the Centre and the state.

“The escalation of the project cost is owing to various reason such as increased taxes, interest amount, land compensation to the project affected people and also the revised design of the project which will have an additional seventh lane,” an MMRDA official said.

The communication letter by Mr Madan further stated, “We have also approached the Asian Development Bank (ADB) for funding of Dahisar to DN Nagar Metro-2 corridor and Andheri-east to Dahisar-east Metro-7 corridor, but things are still at their initial stages.”

The MMRDA needs around Rs 15,000 crore to fund both the Metro-2 and Metro-7 elevated corridor. It has infrastructure projects costing around Rs 60,000 crore for implementation in the city and Mumbai Metropolitan Region (MMR).