Reliance raises US$ 1.6 billion for Mumbai metro

Indian utility company Reliance Infrastructure has secured INR 7000 crore (US$ 1.6 billion) of debt to fund the second phase of the Mumbai Metro scheme. The 32 km line will cost INR 11500 crore (US$ 2.6 billion) in total and will connect the city's northern suburb of Charkop, with the eastern suburb of Mankhurd, via Bandra in the city centre.

The scheme will be built as a build-operate-transfer (BOT) concession, with Reliance setting up a special purpose vehicle (SPV) company, Mumbai Metro Transport Private to take on the construction and operation of the line. Other partners in the SPV include Canadian contractor SNC-Lavalin. The concession will last 35 years, with the option of a 10 year extension.

The route will include 27 stations along its 32 km length, and construction is due to get underway in December. The concession agreement stipulates that construction must be completed within five years of commencement.

In addition to the INR 7000 crore (US$ 1.6 billion) raised by Reliance, the project will receive INR 2298 crore (US$ 520 million) from the Maharashtra state government to fill the 'viability gap' in funding. The balance of the funds will be covered by the SPV's equity.