Mumbai, March 19, 2025: The Maharashtra government has sanctioned Rs 19.50 crore as a soft loan to the Mumbai Metropolitan Region Development Authority (MMRDA) for the implementation of the Mumbai Metro Line-5 project, which connects Thane, Kalyan, and Bhiwandi. This funding is part of the state’s continued commitment to advancing metro rail infrastructure in the Mumbai Metropolitan Region (MMR).
Project Background
The Mumbai Metro Line-5 project was approved by the state government on December 21, 2017. The project is being executed by the MMRDA, with financial support from both the central and state governments. The total financial model includes a 50% contribution from the central government, full funding for state-level and municipal taxes, and land-related expenses.
To support the implementation of this project, the Maharashtra government has allocated Rs. 1352.25 crore as a long-term soft loan to MMRDA. The repayment of this loan is expected to be managed by MMRDA from the revenues generated through the execution of the project.
Current Financial Allocation
For the financial year 2024-25, the Maharashtra government had earmarked Rs. 65 crore under the budgetary provision for Mumbai Metro Line-5. Of this, Rs. 19.50 crore will now be disbursed as a soft loan to MMRDA.
The funding will be provided under the budgetary demand item “6217 – Urban Development Loans” and categorized under “Mumbai Metro Line-5 Project Loan Assistance.” The disbursed amount is designated as non-refundable financial assistance.
Loan Utilization and Repayment
- MMRDA will be responsible for ensuring the utilization of the soft loan for expenses related to the Metro Line-5 project.
- The soft loan amount will be used for central and state taxes, land-related expenses, and other operational costs.
- The state government has mandated that MMRDA repay the soft loan once the project generates revenue and covers its external borrowings.
- In case the government decides to impose interest on the loan, MMRDA will be required to repay it along with the principal amount in a single installment post project completion.
Past Financial Support for Mumbai Metro Line-5
The Maharashtra government has been consistently allocating financial aid to the project since 2022. The disbursement history is as follows:
| Date | Amount (Rs. Crore) | Total Cumulative Amount (Rs. Crore) |
|---|---|---|
| 25-08-2022 | 21.00 | 21.00 |
| 21-03-2023 | 14.00 | 35.00 |
| 04-07-2023 | 12.00 | 47.00 |
| 29-08-2023 | 18.00 | 65.00 |
| 05-03-2024 | 30.00 | 95.00 |
| 24-06-2024 | 21.66 | 116.66 |
| 24-12-2024 | 23.83 | 140.50 |
| 19-03-2025 | 19.50 | 160.00 |
With this latest installment, the cumulative financial aid provided by the Maharashtra government to MMRDA for Metro Line-5 has reached Rs. 160 crore.
Future Considerations
- The Maharashtra government will continue monitoring the financial requirements of the project and provide assistance as necessary.
- MMRDA must maintain separate financial records for the disbursed loan and submit periodic expenditure reports to the government.
- The loan utilization must adhere to state guidelines, and the funds cannot be diverted to other projects.
Conclusion
The Mumbai Metro Line-5 is a crucial infrastructure project aimed at improving public transport connectivity in the MMR region. The government’s continued financial assistance demonstrates its commitment to ensuring timely project completion and efficient urban mobility. The allocation of Rs. 19.50 crore underlines the government’s long-term vision of expanding metro connectivity and easing transportation challenges in Mumbai and its surrounding areas.
Also Read: Mumbai Metropolitan Region Development Authority (MMRDA)
