Viability gap of Rs 650 crore for Metro Rail approved

Mumbai, May 31 (UNI) Maharashtra cabinet today approved a proposal recommending the Centre to grant viability gap of Rs 650 crore to the 11 km Versova-Andheri-Ghatkopar corridor of the Mumbai Metro rail project.

If the Centre does not give the amount, the state government will make available the money.

The total cost of the first phase is Rs 2356 crore. There will 12 stations constructed on the 11 km route, which will be completed in five years.

The completion of the project will enable connectivity of the eastern and western suburbs of the metropois.

Presently, road travel from Versova to Ghatkopar takes 71 minutes.

When the Metro Rail starts functioning, the travel time would be reduced to 21 minutes.

A Special Purpose Vehicle (SPV) will be set up for the implementation of the project. Mumbai Metropolitan Regional Development Authority (MMRDA) will have 26 per cent share equity in the SPV.

An MoU will be signed with the SPV on behalf of the MMRDA for a period of 35 years out of which five years will be for the project construction.

The Government will accquire private land for the purpose of project construction along the Versova-Andheri-Ghatkopar route. The compensation for land accquisition will be paid by the MMRDA.

The contract of constructing the project has been given to Reliance-Anil Dhirubhai Ambani group.

The project construction is expected to commence next month.

UNI MR PM VD RK2003