MMRC reveals revised cost for Mumbai Metro Line 3, here’s the new total after JICA’s funding boost

The Mumbai Metro Rail Corporation (MMRC) on Tuesday revealed the revised project cost for underground Metro Line 3, linking Colaba to Bandra SEEPZ. The Japan International Cooperation Agency (JICA) is funding the project, increasing the total borrowing to Rs 21,280.45 crore from the previous Rs 13,235 crore.

According to Indian Express, JICA funding has been provided by pass-through assistance (PTA) via the Government of India. Reports suggest that the previous funding till four tranches have been disbursed and the fifth tranche of the remaining funds is set to be signed on July 5.

The state urban development department has notified that the metro line is expected to commence in September, this year.

The state government has announced that it will cover the Mumbai Metropolitan Region Development Authority’s (MMRDA) equity share in the increased project cost of Metro Line 3. This decision was formalised through a new notification from the state urban development department on Tuesday.

According to an MMRC official, the MMRDA is already involved in several other Metro and mega infrastructure projects. Therefore, the state will contribute an additional Rs 1,163.3 crore to the MMRC. With the revised project cost, the state’s contribution has now increased to Rs 3,566 crore from the original Rs 2,402.70 crore. Initially, the MMRDA paid an equity share of Rs 2,402.70 crore, and the state will now cover the additional Rs 1,163.3 crore.

Cost increases and challenges

The notification detailed that the original cost of the Metro 3 project, initially scheduled for completion by December 2021, was Rs 23,136 crore. Due to geographic and demographic challenges, land acquisition difficulties, and issues with the Aarey car shed land acquisition, the cost increased by Rs 10,269.82 crore, raising the total to Rs 33,406 crore.

This revised cost was approved on August 25, 2022. Additional challenges posed by the Covid-19 pandemic and a stay on the Aarey cars hed land acquisition have now pushed the project’s expected operational date to September this year.

Between 2021 and 2024, the project incurred extra costs, including Rs 520 crore for consultant fees, Rs 700 crore for rehabilitation and resettlement, Rs 1,500 crore for architectural systems, Rs 150 crore for office expenses, and Rs 1,000 crore for agreements. These additional expenses brought the total project cost to Rs 37,275.50 crore.