Modi's MEGA project set to achieve financial closure by May

Gujarat Chief Minister Narendra Modi's ambitious Metrolink Express Gandhinagar - Ahmedabad (MEGA) project is set to witness the financial closure of Rs 6,000 crore for its first phase in next couple months.

The nodal agency for the project has finalised a consortium of SBI, Bank of India and IDBI to work out on raising the requisite fund of Rs 6,000 crore for the first phase, which is expected to be closed by May.

MEGA being mentioned both in the Union as well as Gujarat state budget recently. Typically, the central government picks up a 25 per cent stake in a metro project and we hope to see the same will happen in case of MEGA.

The Gujarat government has also committed its 15 per cent share of financial support. The rest 50-60 per cent of the total project cost will be raised through debt sources.

The metro rail project, which looks to evolve from mass rapid transport system (MRTS) to metro-cum-regional rail transport system (MRRTS) to cater to not just the state's capital Gandhinagar and Ahmedabad but also surrounding towns.