Metro railways, being loss-making propositions, are generally built and operated by governments or their organizations. The need for constructing a metro railway in Mumbai has been felt for a long time but due to lack of resources the government has not been able to take any initiative. Meanwhile, travelling conditions in the city have become unbearable and unsafe. A group of private consultants has recently completed a techno-economic feasibility study for constructing and operating a metro system in Mumbai through private sector involvement. The paper briefly discusses the financial model and the funding methods recommended to render the project financially attractive for the private sector participation.
Financing a metro rail through private sector initiative: The Mumbai Metro
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