The Centre had already agreed in-principle to provide the viability gap funding for the Rs 22,000-crore project being implemented by the MMRDA. Viability gap funding is the fund given by the government to infrastructure projects that are not commercially viable but have high economic benefit.

The main objective of metro rail project is to provide a rail-based mass transit connectivity to people and to serve the areas not connected by the existing suburban rail system. The phase I of the project includes construction of three corridors — 11-km Versova-Andheri to Ghatkopar, 38.2-km Colaba-Bandra-Charkop and 13.37-km Bandra-Kurla-Mankhurd.

A consortium led by Anil Dhirubhai Ambani Group’s Reliance Energy Ltd (REL) together with the Mumbai Metropolitan Region Development Authority (MMRDA) bagged the contract for the Rs 2,356-crore Phase-I.