Reliance Infrastructure has raised Rs.7,000 Crore debt for developing the second Metro rail project in Mumbai, connecting the suburbs of Charkop, Bandra and Mankhurd. The total project cost is Rs.11,500 Crore. The company said in a release, "The project has received sanctions of about Rs7,000 crore as per its entire debt requirement. While the equity for the project would be infused primarily by Reliance Infrastructure Ltd, the project will also get a viability gap grant of Rs2,298 crore from Maharashtra government". The 32 km Mumbai Metro Line 2 project will provide a vital link between Navi Mumbai and the Western suburbs, connecting Charkop in the North to Bandra and then to Mankhurd in the East. According to a statement by RInfra, the transaction led by Axis Bank witnessed participation from IDBI Bank and Reliance Capital and its associates and was completed in a record time of less than 9 months. Reliance Infra had bagged the build-operate-transfer project in August 2009 in consortium with group company Reliance Communications and Canadian firm SNC Lavalin Inc. The project, tipped to be completed by 2015, has a concession period of 35 years with an extension of 10 years. Lalit Jalan chief executive & wholetime director said in the statement, "We are proud to be developing both the metro rail projects in Mumbai awarded till date which, after their completion, would lead to significant decongestion of the urban transport system in Mumbai". Reliance Infrastructure is also executing the first Metro rail project in Mumbai on the Versova-Andheri-Ghatkopar route. That project would be completed ahead of schedule in 2011, the company said.
Subscribe to GoodReturns