MUMBAI: The Mumbai Metropolitan Region Development Authority (MMRDA) has secured a substantial loan facility of Rs 31,674 crore from Power Finance Corporation (PFC) to fund various infrastructure projects across the Mumbai Metropolitan Region (MMR).
A formal loan agreement was signed between PFC and MMRDA on Wednesday, marking the financial closure of several high-priority infrastructure initiatives aimed at enhancing connectivity, stimulating economic growth, and improving the quality of life in the region.
This financial arrangement will cover 80 per cent of the total project costs, with the remaining funds sourced from government grants and contributions from MMRDA.
Of the total loan, Rs 15,071 crore will be allocated to the Thane-Borivali Twin Tunnel Project, while Rs 16,602.79 crore will support eight additional projects. These projects include the construction of the Thane Coastal Road (Phase I), the extension of the Eastern Freeway from Ghatkopar to Thane, and an elevated road from National Highway No. 4 to Katai Naka. Other projects involve building a creek bridge and access roads from Kolshet Thane to Kharbao in Bhiwandi, a creek bridge between Kasarvadavali, Thane, and Kharbav, and an elevated road from Kalyan Murbad Road (Palms Water Resort) to Badlapur Road (Jagdish Dairy), which will also feature a railway overbridge over the Waldhuni River. Additionally, an elevated road will be constructed on the Eastern Express Highway from Anand Nagar to Saket in Thane city, alongside a creek bridge from Gaimukh to Payegaon.
MMRDA has also requested a state government guarantee to issue bonds worth Rs 14,000 crore for funding infrastructure and development projects within MMR. The initial tranche of these bonds will amount to Rs 1,400 crore, with plans to raise further funds based on the success of this first tranche.
In July, MMRDA received approval to raise up to Rs 50,000 crore through bonds for various infrastructure projects in the city and surrounding areas. These bonds, categorized as Secured, Rated, Redeemable, and Taxable Non-Convertible Debentures (NCDs), will be backed by an unconditional and irrevocable guarantee from the state government.
Over the past two decades, MMRDA has financed public projects by auctioning plots in the Bandra Kurla Complex, primarily for commercial development. With only a few plots remaining, the authority is now turning to bond issuance for funding.
Currently, MMRDA lacks tax revenue generation powers and plans to raise funds through land deals and the monetization of its assets, including the Metro network. While MMRDA anticipates positive cash flow from various revenue sources over the next 25 years, the Rs 60,000 crore loan limit and bond funds will serve as a financial buffer in case of delays in project revenue inflows.