Maharashtra govt disburses Rs 143 crore to Mumbai Railway Vikas Corporation under MUTP-III

Mumbai, Sep 5 (PTI) The Maharashtra government on Friday disbursed a total of Rs 143.17 crore to the Mumbai Railway Vikas Corporation (MRVC) to carry out works under the Mumbai Urban Transport Project (MUTP)-III aimed at easing congestion on the suburban railway network.

A government resolution (GR) issued by the Urban Development Department said the amount of Rs 124.48 crore has been released as additional central assistance from the AIIB (Asian Infrastructure Investment Bank) loan to be passed on to the MRVC through the Mumbai Metropolitan Region Development Authority (MMRDA). The disbursement is strictly conditional and classified as non-recurring assistance, it said.

A separate order said Rs 18.69 crore were released in July 2025, taking the cumulative amount transferred to MRVC under the MUTP-III project so far to Rs 1,289.70 crore.

Officials said the funds would accelerate ongoing works, including extension of suburban services, track augmentation and procurement of rolling stock, which are critical to meeting the needs of Mumbai's expanding metropolitan region.

The GR, however, cautions that any release of funds without the state government's prior approval would be treated as unconstitutional and outside the sanctioned financial framework. Both - the MMRDA and the Housing and Area Development Corporation (HUDCO), which are financial partners in the project, have been directed to maintain separate accounts of contributions and disbursements and ensure compliance with the central and state audit guidelines.

MUTP-III, approved by the Union cabinet in November 2016 with an outlay of Rs 10,947 crore, is being implemented jointly by the Indian Railways and the MRVC in a 50:50 cost-sharing pattern. The project is designed to enhance capacity and improve commuter safety in Mumbai's overburdened suburban railway system, which carries over 80 lakh passengers daily.

As part of the financing structure, the AIIB has extended a loan of USD 500 million (approximately Rs 3,500 crore), signed in August 2020 between the Centre, the Maharashtra government and the MRVC.

Repayment of this loan, including interest and lease charges, is to be borne through surcharges levied on suburban train tickets, the GR noted.

The disbursed amount is to be routed through the MMRDA, which will in turn transfer it to the MRVC for project execution. The resolution underlines that the MRVC must submit quarterly reports to both the Urban Development and Finance Departments, detailing collections made from passenger surcharges and utilisation of funds.

So far, the state government has released tranches of funds at regular intervals since March 2021, beginning with Rs 15.03 crore and gradually scaling up to larger allocations. Rs 124.48 crore cleared on Friday is the 20th such disbursement under the loan agreement.

Key works under MUTP-III include procurement of air-conditioned suburban trains, construction of new elevated corridors, track expansion, and station upgrades, all aimed at reducing overcrowding, cutting travel time and modernising commuter rail infrastructure.

The suburban railway is considered the lifeline of Mumbai, with more than 3,000 services operated daily across Central Railway (CR) and Western Railway (WR) networks. Projects under MUTP phases I and II earlier brought in improvements, such as additional rakes, longer trains and new corridors, but pressure on services continues to mount due to the city's growing population and commuter demand.

The government has stressed that strict financial discipline must be followed. The GR specifies that the MRVC and the MMRDA must ensure timely repayment of the AIIB loan as per the schedule, and no additional funds beyond sanctioned provisions would be made available. Any breach of these conditions, the order notes, would amount to an unconstitutional act on the part of the implementing agencies. PTI ND NP