Mumbai Railway Vikas Corporation (MRVC) has sought additional equity funding from the Maharashtra government as it moves ahead with an extensive suburban railway infrastructure programme valued at around Rs 64,644 crore across the Mumbai Metropolitan Region (MMR).
According to a report by The Free Press Journal, the rail infrastructure agency has proposed a significant enhancement of its capital structure to support the growing scale of its project pipeline. MRVC has requested approval to increase its authorised share capital from the existing Rs 25 crore to Rs 500 crore.
In addition, the corporation has proposed raising its paid-up equity capital to Rs 225 crore through a fresh equity infusion of Rs 200 crore. The proposed funding is intended to strengthen the organisation’s financial base as it undertakes multiple large-scale rail expansion and capacity enhancement projects in the region.
As per the current shareholding arrangement between the Centre and the state, the proposed equity contribution will be divided in a 51:49 ratio. Under this structure, the Government of India is expected to provide Rs 102 crore, while the Maharashtra government’s contribution would amount to Rs 98 crore.
The Ministry of Railways has already granted in-principle approval for its share of the funding. The proposal is now awaiting clearance from the Maharashtra government before the capital infusion can move forward.
MRVC is currently responsible for implementing several key rail infrastructure initiatives aimed at improving suburban connectivity and transportation capacity. These include the Mumbai Urban Transport Project (MUTP)-III, MUTP-3A, MUTP-3B, as well as the third and fourth railway line project connecting Pune and Lonavala.
The combined value of these ongoing and planned projects is estimated at Rs 64,644 crore. This figure does not include investments that may be undertaken under the proposed MUTP-IV programme, indicating that the overall infrastructure pipeline could expand further in the coming years.
Source: Swarajya
