 "MMRDA Metropolitan Commissioner Sanjay Mukherjee")
The Mumbai Metropolitan Region Development Authority (MMRDA), which is responsible for planning and developing infrastructure for India’s financial capital, aims to mobilise close to Rs 1.4 trillion as debt-based funding. In an interview with Amritha Pillay, MMRDA Metropolitan Commissioner Sanjay Mukherjee discusses the fundraising plans, the impact of policies such as Gati Shakti and the challenges in city infrastructure projects. Edited excerpts.
You often speak of MMRDA as one of the fastest-growing urban development corporations globally. What kind of funding does that require and how do you plan to meet these needs?
MMRDA has secured loans from multilateral agencies and financial institutions for prestigious projects like the Metro and Mumbai Trans-Harbour Link (MTHL), amounting to approximately Rs 63,537 crore. Additionally, MMRDA is in the process of procuring loans worth Rs 58,256 crore from banks, financial institutions and organisations like JICA (Japan International Cooperation Agency) for future projects such as the Thane-Borivali tunnel and the Versova-Virar sea link. The government of Maharashtra is also contributing Rs 13,789 crore from GST (goods and services tax) collections as sub-debt for metros, with a further expected contribution of Rs 10,418 crore for other projects. Overall, MMRDA aims to mobilise around Rs 1.46 trillion through debt in the near future.
Are there plans to use operational assets for funding future expansions? Will the Bandra Kurla Complex (BKC) land parcel be monetised further?
The land in BKC serves as a significant revenue source for funding ambitious infrastructure projects undertaken by MMRDA in the entire Mumbai Metropolitan Region (MMR) region. As part of the plan, the monetisation of the BKC land parcel is being carried out in phases. Currently, MMRDA has invited e-tenders for the lease of two commercial plots in BKC.
MMRDA is currently implementing several large projects, such as MTHL and Metro construction. Can you provide a timeline for when these projects will be operational? Are there any challenges, such as the Metro car shed issue? (The car shed had earlier hit a roadblock over the matter of felling trees at Aarey.)
Recently, two Metro corridors were inaugurated in Mumbai, with progress ranging from 50 per cent to 80 per cent. All station work for Metro line 5 has been completed, and the MTHL project, connecting Mumbai to the mainland, is nearing completion. Dedicated project team leaders have been appointed for each corridor to ensure timely completion. Regarding the Metro shed issue, one car shed depot is 53 per cent complete at Mandale, and additional land parcels for depots in Thane district have been acquired.
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How have central policies like Gati Shakti helped MMRDA as a state body? What has been the experience with the Gati Shakti portal, and have there been any challenges?
Central policies like Gati Shakti have played a crucial role in facilitating infrastructure development in our region. The integration of MMRDA’s projects with the Gati Shakti portal has greatly improved information sharing and coordination among stakeholders. The experience with Gati Shakti has been positive overall, streamlining project planning, monitoring, and implementation.
The centralised platform provided by the portal has been immensely helpful in ensuring smooth progress. While there have been some initial challenges, such as adapting to the new system and seamless data integration, MMRDA is actively working with central authorities to address these issues and make necessary improvements.
Financial viability and profitability are major concerns in city infrastructure projects. How does MMRDA plan to address these concerns while keeping user fees affordable?
MMRDA has undertaken large-scale infrastructure projects that not only connect different parts of the city and region, but also cater to the existing demand and boost further growth. While rail-based projects are generally not profitable worldwide, Mumbai's high ridership potential, thanks to its significant public transport usage, makes the system viable and profitable once the entire 337 km network is operational.
In addition to farebox revenue, MMRDA explores nonfarebox revenue sources to ensure financial sustainability, such as commercial exploitation of depot lands, sale of advertisement rights, and sharing revenue from stamp duty and development charges. These efforts have been successfully executed with the support of the state government.
What other projects are currently being considered by MMRDA at the drawing board level for the MMR region?
MMRDA is committed to sustainable and accountable infrastructure development in Mumbai, aiming to create an efficient transportation system that meets public needs, while being environmentally sustainable. By maintaining transparency and involving stakeholders, MMRDA aims to build trust and confidence among Mumbai residents.
Some of the projects currently under consideration include the Versova-Virar sea link, Virar-Alibaug multi-modal corridor, Thane-Borivali tunnel, Orange Gate to Marine Drive tunnel, Thane coastal road, and the extension of the Eastern Freeway up to Thane. MMRDA is actively working on the feasibility and planning of these projects to ensure successful implementation.
