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Distant Dream: The Mumbai metro rail project. Pic has been used for representational purpose.

MAHARASHTRA’S urban ministry and MMRDA can’t understand why the Centre, which has funded metro rail projects in Delhi and Kolkata, won’t give Rs 650 crore of the Rs 2,356 crore required for the phase-I of Mumbai’s metro Rail project.

It’s been months since state government officials wrote to the Centre for funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), to start work on the Versova-Andheri-Ghatkopar (VAG) corridor of the metro rail.

Why the delay?

A senior official from the urban union ministry said, “The funding of the Delhi and Kolkata metro rail projects can’t be compared to those of  Mumbai.”

Another senior MMRDA official explained that Rs 650 crore had not come through because Rs 50,000 crore JNNURM scheme has no provisions for providing Viability Gap Funds (VGF), which is what the Maharashtra government has sought the money as. VGF are meant to cover excess costs arising from long gestation periods.

The Centre expressed fears that if Mumbai metro gets the required funds under JNNURM, it may cause a cash crunch for the other projects. 

A K Mehta, director, National Urban Renewal Mission, Ministry of Urban Development (UD) said, “Our talks with Maharashtra government are in final stages, but it is too premature to comment on financing under JNNURM.”

T Benjamin, principal secretary, ministry of UD, said, “Improvement in Mumbai’s transport facilities is important. The Centre should consider our proposal to fund the Phase-I of the VGF.”

“With PM Manmohan Singh personally asking the Centre to fund the Mumbai metro, I don’t think there should be any problems ahead,” concluded Benjamin.