Mumbai and Delhi metro projects secure loans

metro projects in India

Japan International Cooperation Agency (JICA) signed loans totalling JPY 246.1 billion (USD 1.56 billion) for several metro projects in India.

On July 5th, the JICA signed an agreement with the Government of India for a loan of up to JPY 84.2 billion (USD 536.45 million) for the Mumbai Metro Line 3 project (V). The project covers the civil engineering work and building work for 34 km underground lines and 26 underground stations and one above ground station. The loan will also support the construction of a rolling stock maintenance facility, the procurement of 28 out of 248 metro cars.

The entire project is estimated at JPY 680.7 billion (USD 4.3 billion) and is expected to be completed in January 2025, when all facilities have commenced functioning. The line, linking Colaba, a vibrant neighborhood, Bandra and Seepz (Santacruz Electronics Export Processing Zone) and in 2026 1.5 million passengers each day are expected to use the new line. The travel time from the domestic airport station to Cuffe Parade station (the southernmost station on the line) will take about 45 minutes. Currently, the journey along the corridor takes more than two hours by car during peak time.

For the Mumbai metro project (phases I, II, III, and IV), JICA signed loans totalling JPY 270 billion (USD 1.7 billion). This spring, JICA signed a JPY 59 billion (USD 375.2 million) loan for Mumbai Line 3 project (IV).

The Mumbai metropolitan area has a population of about 18 million, which is one of the largest metropolitan areas in India and one of the most densely populated cities in the world. The city is facing massive traffic challenges as automobile registrations have been significant from 1 million in 2001 to 3.53 million in 2018, resulting in severe traffic congestion with vehicles running an average of 15 km/h.

This spring, JICA has also signed an ODA loan of JPY 103 billion (USD 655.3 million) for Delhi mass rapid transport system project (phase 4, II). The project is estimated at JPY 496.5 billion (USD 3.1 billion). The completion of the project is scheduled for September 2026 when rolling-stock-related procurement is completed.

The project covers the extension of Line 7 and Line 8, which were constructed in phase 3, and constructing a new Line 10, totalling 65 km with 45 stations. The project supported by JICA also includes the procurement of rolling stock, in the section positioned as the fourth phase of the urban rapid transport system construction plan in the National Capital Territory of Delhi. All these projects cover the construction of 29 km underground lines with 18 stations, 36 km elevated/above-ground metro connections served by 27 stations. The project includes the installation of electrical, communication, and signalling systems, as well as the procurement of 312 standard gauge metro cars (52 six-car trains).

The extension of Line 7 (Pink Line) covers 12 km with 8 stations between Mukundpur and Maujpur). The 22 km extension of Line 8 (Magenta Line) will have 22 stations connecting Janakpuri West and Ramakrishna Ashram (R.K. Ashram). Line 10 (Silver Line) will be 24 km long with 15 stations between Aerocity and Tughlakabad.

Two years after projects’ completion, the Line 7 extension will have a daily traffic of 2.58 million passenger – km, Line 8 extension, 7.30 million passenger – km, and Line 10, 3.59 million passenger – km.

Road traffic in Delhi is extremely congested. According to a survey by a private company, due to traffic congestion, it takes approximately 1.47 times longer to travel by car in Delhi than it would if there were no traffic congestion. This place Delhi 8th in the world as of 2020, according to this survey report covering 57 countries. The transport sector in Delhi emits the largest amount of CO2 compared to other cities in India, and air pollution due to the increase in the number of automobiles emits about 10 times the World Health Organisation standard.

The Government of National Capital Territory of Delhi has been planning and promoting urban transportation development, mainly the introduction of a mass rapid transport system, in order to reduce traffic congestion and air pollution in the National Capital Territory of Delhi and to meet the increasing transport demand.

As of May 2024, JICA has been approved 56 loans totalling JPY 3.7 trillion (USD 23.5 billion) tu support metro projects in India such as Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Ahmedabad, and Patna.

India has updated its Metro Rail Policy in 2017 to promote sustainable transport systems including metro, rail, and bus transport, from the perspective of safety and energy efficiency, in addition to meeting the transport demand and reducing traffic congestion associated with recent economic growth. In large cities, the construction of metro is recommended for reasons such as providing mass transit without putting pressure on existing road capacity.

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