AIIB and India sign agreement of USD 500 million for Mumbai Urban Transport Project-III

The Indian Government, Maharashtra government and Mumbai Railway Vikas Corporation has signed a loan agreement of USD 500 million dollars with the Asian Infrastructure Investment bank (AIIB) for Mumbai Urban Transport Project-III.

The project aims at improving the service quality, network capacity, and safety of the suburban railway system in Mumbai. It is also expected to increase the network capacity with the reduction in fatal accidents and the journey time of commuters.

The loan agreement between AIIB and the Indian government was signed by Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Indian government.

Key highlights:

• Among the primary beneficiaries of the Mumbai Urban Transport Project-III, 22% of the female passengers will be benefitted from improved safety and the quality of the service.

• The project will assist in the improvement of service quality, mobility, and safety of passengers of the sub-urban railway system of Mumbai.

• It will also provide more reliable, and higher quality of transport services as compared to road-based transport.

• Under this project, there will also be direct safety benefits to the public and the passengers through the introduction of trespass control measures.

Need for infrastructure planning in MMR:

Mumbai Metropolitan Region (MMR) with a population of 22.8 million (2011) is the most populous metropolitan region in India. It is expected to reach 29.3 million by 2031 and 32.1 million by 2041.

The rapid population growth represents the core driver behind Mumbai’s urban expansion, compelling the Maharashtra government to prioritize sound infrastructure and urban planning which will balance mobility, economic activities as well as the optimization of social and environmental outcomes.