Mumbai rail success story inspires Melbourne’s transport plans

Former Managing Director of MRVC Dr PC Sehgal discusses hybrid financing structure (Pic/Special arrangement)

In a potential boost to urban transport collaboration, Melbourne is exploring Mumbai's rail financing playbook. Former Managing Director of Mumbai Rail Vikas Corporation (MRVC) Dr PC Sehgal, earlier this week, held discussions on adapting the funding model pioneered by MRVC for Australian conditions.

The talks focused on how MRVC's hybrid financing structure - built on contributions from the central government and the state, supplemented by borrowings - enabled large-scale suburban rail upgrades in Mumbai. Officials believe a similar approach could help Melbourne overcome funding constraints for mass transit expansion.

Melbourne currently relies heavily on its extensive tram network, much of which operates without a dedicated right of way, resulting in slower average speeds and limited capacity gains. The absence of a full-fledged metro system has increasingly been seen as a gap in the city's long-term mobility planning.

Sources indicated that the MRVC model could offer a template for financing a future metro network in Melbourne, particularly by spreading costs across stakeholders and leveraging institutional borrowing.

While still at a preliminary stage, the discussions signal growing global interest in Mumbai's transport funding mechanisms as cities grapple with rising urban mobility demands.