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The state cabinet granted approval on Monday for an unconditional government guarantee, facilitating the procurement of loans amounting to INR 24,000 crore for the Mumbai Metropolitan Region Development Authority (MMRDA). These funds are earmarked for diverse infrastructure enhancement initiatives within the Mumbai Metropolitan Region (MMR), as outlined in a government press release.
Of the total loan amount, INR 12,000 crore each is allocated from the Rural Electrification Corporation (REC) and the Power Finance Corporation (PFC). REC has extended a loan of INR 30,593 crore for the development of Metro Line 8, with the government previously guaranteeing INR 12,000 crore of this sum. In the latest development, the cabinet has endorsed an additional guarantee of INR 12,000 crore for this project.
Meanwhile, the PFC has sanctioned a substantial loan worth INR 50,301 crore for the construction of a tunnel connecting the Orange Gate Freeway to Marine Drive, a pivotal link to the coastal road network, along with other infrastructural ventures. Notably, the cabinet's approval for a government guarantee pertains to INR 12,000 crore of this loan amount.
In a separate decision, the cabinet approved a request from the MMRDA to secure a loan of INR 850 crore and a grant of INR 19 crore from KFW, an esteemed international financial institution headquartered in Germany. These funds are intended to support the Mumbai Regional Urban Infrastructure Improvement Programme, a comprehensive initiative aimed at enhancing urban infrastructure across the city.
Overall, the cabinet's approval of the government guarantees for loans totaling INR 24,000 crore underscores a significant commitment towards bolstering infrastructural development within the Mumbai Metropolitan Region.
Furthermore, the successful negotiation of partnerships with esteemed financial institutions like REC, PFC, and KFW reflects an effort by the MMRDA and the state government to leverage external funding sources for critical infrastructure projects. Such collaborations not only relieves the financial burden on the state exchequer but also facilitate the timely execution of key developmental initiatives, thereby fostering sustained progress and prosperity in the Mumbai Metropolitan Region.
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