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MUTPS WORLD BANK CREDIT LINE IS AT RISK

mutps-1While the MMRDA is seeking loan extension for the MUTP project, the World Bank does not seem to be keen on giving them the extension. Unfact the bank is said to be unhappy with the tardy pace of project execution and has set stiff norms for loan period extension Chief minister Ashok Chavan may have asked state MPs to lobby hard with the Centre to secure budgetary support for the Mumbai Urban Transport Project (MUTP), but that seems to have cut little ice with the World Bank. The Bank has expressed its inability to extend the loan period for key infrastructure projects in the country’s financial capital. A World Bank team who has been tasked with MUTP programmes, has made it clear to the MMRDA, the nodal agency for all MUTP schemes, that the Bank can not extend the loan period beyond June 15, 2010. The Bank, it’s believed, is not particularly happy with MMRDA’s overall execution of the projects. The MMRDA has sought loan extension till December 2011. The phase II of MUTP has railway, road, and resettlement components, and the World Bank has agreed to fund Rs 2,313 crore for the Rs 5,127-crore project. MMRDA officials said the Rs 3,778-crore railway component, which involved laying of new corridors and introduction of additional trains, had almost completely been implemented. It is the Rs 782-crore road provision which is facing delay and is seriously off target, the officials admitted. Bureau report – NMTV News.

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