Japan quake may rock Mumbai Metro

Mumbai might suffer due to the earthquake in Japan as the Japanese International Cooperation Agency (JICA) that was believed to fund the Colaba-Bandra Metro route or the third corridor of metro is most likely to pull out due to the need of funds for rehabilitation in Japan.

As a result it can be said the problem of funding for the third corridor of the metro rail has again raised its ugly head to haunt the Mumbai Metropolitan Region Development Authority. MMRDA has been struggling with the funding of the project since a long time and with the latest jolt, the future of the third corridor of metro hangs in balance.

The approximate cost of the third corridor of metro is Rs 12,000 crore. JICA was presumed to fund the third corridor of Metro, however with the requirement of monetary assistance in Japan increasing after the tragedy, it is highly unlikely JICA would be funding any projects in the near future. The estimated losses caused by the tsunami in Japan is around Rs 170 billion dollar i. e. approximately Rs 85,000 crore as per senior officials from MMRDA. “ Though there hasn't been any confirmation with such a huge fund requirement there are very slim chances that they would be funding the project," said the official.

Finance Minister Pranab Mukherjee had earlier mentioned in the budget that there would be funding for the third corridor of Metro from the Centre, however no specific amount was mentioned by him raising serious doubts on the statement and Centre's grant.

The Central government had earlier thrice refused to fund the Viability Gap funding for the third corridor. However in last few months JICA had showed keen interest in funding the project. The MMRDA had also preferred JICA to World Bank due to the low rate of interest and less interference in the execution of the project.