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Government of India and AIIB Sign Agreement For $500 Million To Improve Network Capacity Of Mumbai Suburban Rail

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Capital Market
Last Updated : Aug 25 2020 | 9:04 AM IST

The Government of India, the Government of Maharashtra, Mumbai Railway Vikas Corporation and the Asian Infrastructure Investment Bank (AIIB) signed a loan agreement for a $500 million Mumbai Urban Transport Project-III to improve the network capacity, service quality and safety of the suburban railway system in Mumbai. The Project is expected to increase network capacity in the region with the reduction in journey time and fatal accidents of commuters. It is estimated that among primary beneficiaries of the project, 22% are female passengers who will benefit from improved safety and quality of service. The loan agreement was signed by Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India.

This project will assist in improved mobility, service quality and safety of passengers of the sub urban railway system of Mumbai, by providing faster, more reliable and higher quality transport services compared to road-based transport. There will be direct safety benefits to passengers and the public through introduction of trespass control measures. With a population of 22.8 million (2011), Mumbai Metropolitan Region (MMR) is the most populous metropolitan region in India and is expected to reach 29.3 million by 2031 and 32.1 million by 2041. This population growth represents the core driver behind Mumbai's urban expansion, compelling the state of Maharashtra to prioritize sound urban and infrastructure planning which balances economic activities, mobility as well as the optimization of environmental and social outcomes.

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First Published: Aug 25 2020 | 8:55 AM IST

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