The Maharashtra government disbursed Rs 143.17 crore to the Mumbai Railway Vikas Corporation (MRVC) on Friday to advance works under the Mumbai Urban Transport Project (MUTP)-III, aimed at decongesting the city's overburdened suburban railway network. According to a government resolution (GR) from the Urban Development Department, Rs 124.48 crore comes as additional central assistance from an Asian Infrastructure Investment Bank (AIIB) loan, routed through the Mumbai Metropolitan Region Development Authority (MMRDA). An earlier July 2025 release of Rs 18.69 crore brings the total funds under MUTP-III to Rs 1,289.70 crore.
Officials stated that the allocation will speed up key initiatives, including suburban service extensions, track augmentations, and rolling stock procurement, essential for Mumbai's growing population. The GR stresses that funds are conditional and nonrecurring, with unauthorised releases deemed unconstitutional. MMRDA and HUDCO must maintain separate accounts and comply with audit guidelines.
Approved in 2016 with a Rs 10,947 crore outlay, MUTP-III is a 50:50 partnership between Indian Railways and MRVC. It focuses on capacity enhancement and safety for a system handling over 80 lakh daily passengers across 3,000+ services on Central and Western Railway lines. The AIIB's USD 500 million loan (about Rs 3,500 crore), signed in 2020, will be repaid via ticket surcharges.
Also Read: Putin: Foreign Troops in Ukraine Before Peace Deal Will Be ‘Legitimate Targets’
MRVC must provide quarterly reports on surcharge collections and fund usage. This 20th disbursement since 2021 builds on prior phases' successes, like added rakes and corridors, amid rising commuter demands.
The government mandates strict fiscal discipline, ensuring timely loan repayment without extra provisions. These upgrades promise reduced overcrowding, shorter travel times, and modernised infrastructure, reinforcing Mumbai's rail network as the city's lifeline.
Also Read: Two New AC Local Train Services Start In Eastern Railway’s Sealdah Division