A MMRDA official, who did not want to be named, told Business Standard, “Notwithstanding Japan falling into recession, we are quite confident that JICA will provide the loan for the MTHL project. The JICA team, which held talks with MMRDA officials in July, had indicated that it may give up to 80% loan for the project, which is approximately Rs 8,800 crore. The state government and MMRDA are pursuing the matter with JICA and are optimistic it will be approved in the next two months.”
The official said that CM Devendra Fadnavis reviewed the project about 10 days back and said he will seek Centre’s intervention for early loan approval by JICA.
MMRDA official said MTHL project will facilitate de-congestion in Mumbai by improving connectivity between Island city and main land (Navi Mumbai).
“Already the MMRDA has taken a decision to undertake the construction on a cash contract wherein a contractor will be appointed through competitive bidding to complete the project. MMRDA will own the project,” he noted.
He said the UPA-II government had already approved 20% of the project cost as viability gap funding (VGF). However, he added that the VGF arrangement will not apply to the cash contract model.