September 5, 2025:
The Maharashtra government on Friday released Rs 143.17 crore to the Mumbai Railway Vikas Corporation (MRVC) to accelerate works under the Mumbai Urban Transport Project (MUTP)-III, a major scheme aimed at reducing congestion on the city’s overburdened suburban railway network.
According to a government resolution (GR) issued by the Urban Development Department, Rs 124.48 crore has been disbursed as additional central assistance from the Asian Infrastructure Investment Bank (AIIB) loan, to be channelled through the Mumbai Metropolitan Region Development Authority (MMRDA). The order classified this release as non-recurring financial support and made it conditional.
A separate notification revealed that Rs 18.69 crore had already been disbursed in July 2025, taking the cumulative transfer to MRVC under MUTP-III to Rs 1,289.70 crore. Officials said the funds would be crucial in fast-tracking key works such as track augmentation, suburban service extensions and procurement of new rolling stock.
The GR also stressed financial discipline, warning that any release of funds without prior state approval would be considered unconstitutional. The MMRDA and Housing and Urban Development Corporation (HUDCO), financial partners in the project, have been directed to maintain separate accounts and comply fully with audit norms.
MUTP-III, approved by the Union Cabinet in 2016 at a cost of Rs 10,947 crore, is being jointly implemented by Indian Railways and MRVC on a 50:50 cost-sharing basis. The AIIB loan of USD 500 million (around Rs 3,500 crore), signed in August 2020, underpins much of the financing. Repayments, including interest, are to be met through surcharges on suburban train tickets.
Officials highlighted that the Rs 124.48 crore released this week represents the 20th tranche under the loan arrangement. Projects funded include air-conditioned suburban trains, elevated corridors, expanded tracks and upgraded stations, designed to modernise infrastructure and ease crowding across Mumbai’s lifeline rail system.
Source: Devdiscourse
