Months after Union Urban Development Minister S Jaipal Reddy offered central funding for 50 per cent of the project cost of the Colaba-Bandra Metro rail corridor, the state government has sent a proposal seeking the Centre’s approval for a joint venture.

The 20 km Colaba-Bandra corridor, to be built partially underground, has a huge viability gap funding, making it unviable for private players to invest. The first two Metro lines, the 11.4-km Versova-Andheri-Ghatkopar route and the 31.87 km Charkop-Bandra-Mankhurd route, are being constructed by private player Reliance Infrastructure on a PPP model.

“We have sent a proposal to the Centre seeking approval on the DMRC airport model, which involves 50 per cent equity from the Centre. In this model, a fully state-owned body completes the civil work and then ropes in private players to invest in the procurement of rolling stock, signalling and telecommunication equipment and other operational components,” said Ratnakar Gaikwad, metropolitan commissioner.

The MMRDA is still keeping its options open as it is awaiting a report on the viability of commercial exploitation of the station areas in the underground section. “We’ll know in a month about the commercial utilisation of stations. Commercial exploitation would lower the viability gap funding substantially. Then, we can still opt for a PPP model,” Gaikwad said.

The Mumbai Metropolitan Region Development Authority, the nodal agency for the project, has also got clearance from the state cabinet on the alignment for the third corridor. “The state has given the go-ahead for an underground section between Colaba and Mahalaxmi; the line will be elevated from Mahalaxmi to Bandra. This will bring down the project cost by Rs 3,000 crore,” Gaikwad said.

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