Costs And Financing

On the face of it, the problems being faced by KRC should not apply to the Navi Mumbai project since there is no debt component in its Rs 1,275 crore project cost. The Maharashtra government is to meet two-third of the project cost with the rest being borne by the Indian Railways. But there is a hidden debt component in that the state government will put in its share of the project cost by raising funds through state bonds. Though the formal agreement between the railways and Maharashtra government has been signed only now, the five sections in the Navi Mumbai scheme have obtained clearances.