Phase II of the project comprises installation of the fifth line between Chhatrapati Shivaji Terminus (CSTM) to Kurla and Thane to Diva; and sixth line between Borivali to Mumbai Central. In this phase, the MRVC also plans to convert the Direct Current Line to Alternate Current of 25 kilowatt, procure 96 EMU rakes and introduce maintenance facilities for the EMU rakes.

Further, the MRVC plans to have stabling lines for EMUs apart from technical assistance and institutional strengthening. The project would also cover resettlement and rehabilitation of 3,000 Project Affected People (PAPs).

With all these plans, the estimated cost of phase II comes to around Rs 5,000 crore. On Monday, the World Bank officials held discussions with the MRVC officials to discuss funding for it.

“World Bank had given us loan of Rs 1,438 crore for Phase I. We have asked them to fund us for Phase II as well. We are hopeful that the loan is sanctioned by June 2009,” said MRVC managing director P C Sehgal.

The state and the Centre (railway) will fund the remaining amount, which comes to around Rs 3,100.

This apart, the railway had planned to commercially exploit Bandra land and use the money earned from it for phase II of MUTP. But the matter is in a limbo at present. For, both the state government and the railway have staked their claim over the 11 hectares of land near Bandra station, a prime location. Sources said the railway is estimated to earn around Rs 900 crore from this land deal.

“On railway’s part, it has to give more money than the state, as it also has to fill the gap which arose due to the land dispute,” said a senior MRVC official.

Excluding the amount which was to come from the land, both the railway and the state were to allocate Rs 1,000 crore for phase II.