Bombay: The Mumbai Metropolitan Area Development Authority (MMRDA) expects good cash flow from various sources of income over the next 25 years, but officials said the Rs 60,000 crore it has been allowed to raise in loans will serve buffer in case of non-receipt of expected sources in the next five years due to the delay of projects and its impact on revenue inflows. MMRDA‘s revenue stream has been hit due to the delay in commissioning major projects due to the Covid-induced lockdown as well as the parties’ lack of interest in plots of land being leased to BKC.
The authority is confident that it will be able to repay loans by levying development charges on residential, commercial and industrial units, in addition to land monetization. The money needed to operate and maintain the assets can be raised through taxes, levies, advertising, etc., officials said. MMRDA has already appointed SBI Capital Funds to help raise the loans. SBI Capital Funds will charge 0.20% commission on the total loan amount as a fee. The decision to appoint SBI Capital Funds was taken at an MMRDA meeting when the current CM headed the Ministry of Urban Development.
According to the Comprehensive Transport Study-2 (CTS-2) update released in October 2021, MMRDA will require Rs 5.01 lakh crore over a period of 20 years for various infrastructure projects like the numerous Subwaysbus lanes and cycle paths, etc. in the MMR, which covers 6,355 km². MMR comprises Mumbai and part districts of Thane, Palghar and Raigad, having a population of 2.5 crore.
CTS-2 projected that 337 km of the metro system could be completed by 2026. Of this total, nearly 11.4 km are ready, carrying 4.5 lakh weekday commuters, about 180 km are under implementation, 42.6 km are at the bidding stage and the remaining 103 km are at the stage of preparation of the Detailed Project Report (DPR).
MMRDA expects ‘super dense crush load’ congestion of 12-18 people per sq m on local trains can be reduced to the international standard of 6 people per sq m once metro projects are completed . The metro network is expected to increase the travel speed of public transport from 26 km/h in 2005 to 37 km/h by 2041.
The extension of the metro network will ensure that mass public transport will be accessible to MMR citizens within a radius of 500m to 800m; in addition, a reduction of CO2 of 1 million tonnes per year and of fine particles of 1,000 tonnes per year is expected. The plan aims to improve the share of those using public transport to 75.4% from 65.3% in 2017.