The Rs 3,200 crore funding from JICA has not yet been disbursed, as the final approval from the central government for the revised detailed project report is still pending.
MMRCL is responsible for the implementation of the Colaba-Bandra-SEEPZ Metro Line-3 project.
Mumbai Metro Rail Corporation Limited (MMRCL) is in the process of securing an additional Rs 1,000 crore in bank loans.
This is because the Rs 3,200 crore funding from Japan International Cooperation Agency (JICA) has not yet been disbursed, as the final approval from the central government for the revised detailed project report (DPR) is still pending, reports ET.
To finance its projects, MMRCL has already obtained a loan facility of Rs 2,200 crore from the Power Finance Corporation. This loan has been given an AA- (CE) rating by Crisil.
The CE rating signifies that the rating opinion is based on the assumption that the Maharashtra government will provide funding support if necessary.
Crisil has reported that MMRCL intends to raise an additional Rs 1,000 crore through a long-term loan facility.
Repayment of both the current borrowing and the previous borrowing will be made through a bullet payment on the final repayment date.
The funding for this repayment will come from loans of Rs 3,200 crore that are expected to be disbursed by JICA.
JICA has already given an ‘in principle’ approval for the disbursement.
However, the final disbursement is contingent upon the approval of the revised project cost by the government, as well as project appraisal and approval by JICA and the government of Japan.
According to Crisil’s rating review, “The JICA facility approval was previously expected by June 2023. However, the final approval from the Government of India is still awaited on the revised DPR and accordingly, the JICA facility is now expected to be disbursed in the next 6 months.”
In the event of a delay in receiving funds from JICA, MMRCL will notify the government 30 days prior to the bullet principal servicing date. This will allow for appropriate measures to be taken.
MMRCL, a joint venture between the government of India and the government of Maharashtra, serves as the administrative agency responsible for the implementation of the Mumbai Metro Line-3 project.
The Colaba-Bandra-Special Electronics Export Processing Zone (SEEPZ) Metro Line, also known as the Aqua Line, will run to connect north and south Mumbai. MMRCL expects this metro line to be operational by June 2024.
It is the first underground metro line in Mumbai and also one of the longest underground continuous stretches in India.