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- By Parinda News Bureau, April 18, 2006, 09:41 IST
Union Urban Development Minister S Jaipal Reddy has announced that the central government would take care of 20 per cent of the viability gap funding for the first line of Mumbai Metro connecting Ghatkopar-Andheri-Varsova as well as provide 35 per cent funding for the city's projects under the National Urban Renewal Mission (NURM).
The declaration has given a boost to the infrastructure projects in Mumbai. “We will provide financial assistance to all the nine corridors of the Metro which the state government proposes to undertake,” Reddy said.
“The Centre will provide 35 per cent assistance to the city's infrastructure projects such as storm water drainage scheme, the Middle Vaitarana dam and the Sewage Treatment Scheme-II under NURM,” he added.
The cost of these projects comes to around Rs 15,000 crore, of which the government will provide 35 per cent. The rest will be financed by the state government and the city corporation.
Besides Mumbai, the Centre would also provide fund for infrastructure projects in cities such as Pune, Aurangabad, Nashik and Nanded.
Meanwhile, a senior government official said that the negotiations between Mumbai Metropolitan Region Development Authority (MMRDA) and Reliance Energy (REL)-led consortium over viability gap funding had reached the final stage. The REL-led consortium has agreed to reduce its demand for viability gap funding from around Rs 1,251 crore to around Rs 900 crore and there was general consensus in the government on this figure. The final decision would be taken very soon, he said.
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