Mumbai gets a $48 bn boost to develop infrastructure: report

The Mumbai Metropolitan Region Development Authority (MMRDA) has announced plans to invest over Rs4.07 trillion ($48 billion) over the next five years to on infrastructure projects and boost connectivity across the Mumbai metropolitan region, The Economic Times reported on Sunday.

The plan is part of MMRDA’s initiative with NITI Aayog’s Growth Hub strategy and aims to turn the region into a major economic center.

According to MMRDA officials, the investment will be financed through non-binding lines of credit from major Indian financial institutions, including the Rural Electrification Corp. (REC), Power Finance Corp. (PFC), Housing and Urban Development Corp. (HUDCO), Indian Railway Finance Corp. (IRFC), and the National Bank for Financing Infrastructure and Development (NaBFID).

The credit lines are set up to fund only financially viable projects, with interest rates to be decided through a bidding process, according to the report.

“The idea of ‘Mumbai in Minutes’–where any two points in the region can be reached within 59 minutes–is no longer a distant dream. It is now an achievable, bankable reality,” said MMRDA Metropolitan Commissioner Sanjay Mukherjee, The ET reported.

The funds will support development of urban transport, housing, multimodal connectivity, energy systems, and digital urban services. These initiatives are aimed at reducing commute times, improving urban mobility, and enhancing the quality of life for residents.

As part of the Growth Hub strategy, MMR is one of four regions identified for accelerated economic development. The others are Surat, Visakhapatnam, and Varanasi. MMRDA’s roadmap targets an increase in the region’s economic output to $300 billion by 2030, with the potential to generate over three million jobs.

Under the financial structure, HUDCO has committed Rs1.5 trillion for housing, transport, and urban development projects, the report said.

REC and PFC have each promised Rs1 trillion, focusing on improving energy use and urban transport. Meanwhile, IRFC has offered Rs50,000 crore for metro and rail projects, and NaBFID has pledged Rs7,000 crore for transport and smart city services.

Each financial institution has agreed to provide its full credit amount for five years, allowing the lenders review the financial health of projects at every stage, the ET report said.