After declining to support the first phase of Mumbai Metro rail project, the finance ministry is considering part financing the second phase of the project that is estimated to cost Rs 5,527 crore."We have recently received a proposal from Maharashtra government for the second corridor of Mumbai Metro Rail Project seeking Rs 1,658 crore assistance under viability gap funding (VGF) scheme of the central government," a senior finance ministry official said.He said the proposal has been sent to urban development ministry, law ministry and planning commission for comments.After getting their comments, the proposal will be considered for VGF funding, he said, adding once the project was sanctioned, the state government would call bids.The second phase of the Mumbai metro project would connect Charkop, Bandra and Mankhurd.The nine-phase Mumbai Metro project was inaugurated by Prime Minister Manmohan Singh early this year and the first phase has already been contracted to Anil Dhirubhai Ambani Group (ADAG)-promoted Reliance Energy.VGF for the first phase has however been turned down by the finance ministry on grounds that bids were awarded before notification of the scheme.The bid was awarded to ADAG in early 2006, while VGF provisions were made in July this year.The funding for the first phase, estimated at Rs 2,356 crore, is now being considered by the urban development ministry under the Jawaharlal Nehru National Urban Renewable Mission, the official said.
