Home / News / India /  AIIB to lend $500 million to Mumbai suburban rail

MUMBAI : The Asian Infrastructure Investment Bank (AIIB), a multilateral development bank, has committed to lending $500 million to expand Mumbai’s suburban railway network, a senior executive announced here on Friday. This brings the bank’s total investments in India to $2.9 billion.

The project involves quadrupling of Virar-Dahanu Road corridor (64 km) to provide an extension of the suburban railway service to connect peripheral areas with Mumbai. The project will also see the construction of a new suburban railway corridor between Panvel and Karjat (28 km), said AIIB’s DJ Pandian, vice-president and chief investment officer.

“Over the past four years, AIIB’s investments in India have grown exponentially," Pandian said. “This is a clear sign of our valuable partnership. AIIB will continue aligning its commitments with the government’s priorities, with the bank serving as a catalyst to India’s continued development."

Additionally, there will be an installation of control measures on 36 priority sections of existing lines to reduce fatal accidents. These measures include track segregation by fencing or using reinforced concrete walls and pedestrian crossings over or under the tracks.

With a population of about 12 million, the suburban railway is the primary means of transport in Mumbai, with the network totaling almost 400 km and carrying more than 7.5 million passengers a day. In October, AIIB also approved a loan of $75 million to Tata Cleantech Capital Ltd, a non-banking financial company that lends to renewable energy projects in India. The Tata Cleantech Sustainable Infrastructure On-Lending Facility project aims to increase private capital investment in renewable energy, power transmission and water infrastructure.

To date, AIIB has contributed to 13 projects in India, the bank’s second largest shareholder. Headquartered in Beijing, the bank began operations in January 2016 and now has 100 approved members worldwide. The bank’s annual investment target is about $10 billion.

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