The Railway Ministry headed by Piyush Goyal has arranged funding to the
tune of 700 Million US dollars including five hundred million US Dollars from
Asian Infra bank to tone up the Mumbai suburban railway system. The railways
have also sanctioned substantial funds from its budget on a priority basis to
improve the lot of the Mumbai suburban railway system. Railways will be funding
187 million US dollars.
The Government of India, the Government of Maharashtra, Mumbai Railway
Vikas Corporation and the Asian Infrastructure Investment Bank (AIIB) have
signed a loan agreement for a 500 million US dollars Mumbai Urban Transport
Project-III to improve the network capacity, service quality and safety of the
suburban railway system in Mumbai.
The Project to
increase network capacity in the region
The Project is expected to increase network capacity in the region with the
reduction in journey time and fatal accidents of commuters. It is estimated
that among primary beneficiaries of the project, 22 per cent are female
passengers who will benefit from improved safety and quality of service.
The loan agreement was signed by Mr Sameer Kumar Khare, Additional
Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of
the Government of India, Mr Sanjay Kumar, Chief Secretary on behalf of the
Government of Maharashtra, Mr R. S. Khurana, Chief Managing Director on behalf
of the Mumbai Rail Vikas Nigam and Mr Rajat Misra, Director General (Acting),
Investment Operations on behalf of the AIIB.
railway network suffers from some of the most severe overcrowding in the world
Around 86 per cent of Mumbai commuters rely on public transport. However,
supply has not kept pace with rising travel demand. The Mumbai suburban railway
network, which carries three quarters of all motorized travel ( eight million
passengers per day) increasing at three per cent annually, suffers from some of
the most severe overcrowding in the world.
AIIB Vice President D.J. Pandian said in line with our Transport Sector
Strategy, the Mumbai Urban Transport Project-III will also help in reducing
carbon emissions by shifting passengers away from higher-carbon road transport
towards efficient and convenient rail-based mobility. In addition, female
passengers will benefit from improved safety and quality of service.
The total estimated cost of the project is 997 million
US dollars, of which 500 million US dollars will be financed by the AIIB, 310
million US Dollars by the Government of Maharashtra and 187 million US Dollars
by Ministry of Railways. The 500 million US Dollars loan from the AIIB has a
5-year grace period and a maturity of 30 years.