Metro Company To Be Restructured for Colaba-SEEPZ Line
The Mumbai Metropolitan Region Development Authority (MMRDA) has recently sent a proposal to restructure the Mumbai Metro Rail Corporation (MMRC) Ltd. Following this step, the Colaba-Bandra-SEEPZ metro line will gain momentum and eventually help in faster completion of the metro line.
MMRC to undergo restructuring
The MMRC, a wholly-owned company of the Maharashtra government, was formed to implement the metro rail project in Maharashtra. The underground project from Colaba to Andheri SEEPZ was to be executed on a 50:50 joint venture between the state and the Centre.
The restructuring of the metro company will ensure steady flow of funds. It will also pave way for finalizing bids for the project.
Funds break up
The total project cost is estimated to be Rs. 23,130 crore. With the 50:50 joint venture, the Centre will invest about Rs. 5,000 crore as equity and subordinate debt. The Maharashtra government too will be investing an equal amount. The remaining Rs. 13,130 crore will be taken as a soft loan from Japan International Cooperation Agency. The Mumbai International Airport Ltd (MIAL) too will be sharing a part of the project cost as one of the metro stations on this line will be at the international airport. MIAL will be contributing approximately Rs.770 crore for the project.
Colaba-Bandra-SEEPZ metro line
The metro line from Colaba to Andheri SEEPZ via Bandra is the third line in the first phase of Mumbai metro. It covers a distance of 33.5 km and will be completely built underground. Some of the important stations on this metro line will include Cuffe Parade, Nariman Point, Worli, Dadar, Bandra, BKC, Mumbai International Airport, Andheri MIDC and SEEPZ. The metro line will reduce road congestion as well as take the load off the suburban railway between Bandra and Churchgate.
Effect on real estate
The metro line passes through the regions of South Mumbai and western suburbs such as Dadar, Bandra and Andheri. All regions are known to be expensive. With the mass rapid transit system (MRTS) in place, there will be an increased demand for residential projects in these areas. However, considering the high property rates in the regions (about Rs. 16,000-50,100 per sq.ft.), there may be a higher demand for rental properties Hence, one can expect an increase in rental values as well as property values in these areas.
