Japan has agreed to fund Rs 3,943 crore in soft loan for the development of the underground third line of Mumbai Metro between Colaba and Seepz in Andheri and has also accepted to conduct a joint feasibility study for a high speed railway link with Ahmedabad. The loan is the first of three instalments that are expected to cover 40% of the project cost. The decision was taken after a meeting between Prime Minister Manmohan Singh and his Japanese counterpart Shinzo Abe in Tokyo.
The Metro project which is expected to be on track by 2020 is estimated at Rs 24,700 crore which will have 27 stations. The loan for Metro III project will be given by the Japan International Cooperation Agency (JAICA) at an interest of 1.44%. The length of the Metro III corridor is 33 km. The Japanese institution will monitor all developments and will assist in implementing the project.