The Mumbai Metropolitan Regional Development Authority (MMRDA), which is planning the underground metro project in the city, wants Maharashtra government to bear the interest cost of the loan for the project.
MMRDA plans to borrow over Rs 11,500 crore from Japan International Cooperation Agency (JICA) for the project.
According to the authority, the revenue generated through toll collection would be enough just to recover the operational and maintenance costs. But interest cost will not be covered through this. Therefore, it seeks state assistance for servicing the proposed loan.
In other states, the government provides assistance in the form of interest cost or by providing land. State participation is important in such projects, MMRDA said.
It is in talks with the state government regarding this. The underground metro project will connect downtown Colaba with Seepz in the north via Bandra.
The project is expected to cost Rs 21,000-crore, and MMRDA and the centre will be contributing Rs 4,000 crore each for the project.
MMRDA commissioner Rahul Asthana will meet the officials of the Planning Commission, and Union Urban Development and Economic Affairs Departments in New Delhi to appraise them of the project.