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India-AIIB Agreement on Railway System will boost suburban railway systems. Agreement for a $500 million Mumbai Urban Transport Project-III to improve the network capacity, service quality and safety of the suburban railway system in Mumbai.

About the Agreement (India-AIIB Agreement on Railway System)

• To increase network capacity in the region with the reduction in journey time and fatal accidents of commuters.
• 22% are female passengers who will benefit from improved safety and quality of service.
• Project Aim : 
  • Improved mobility
  • Service quality and safety of passengers
  • Faster, more reliable and higher quality transport services
  • Introduction of trespass control measures.
• The total estimated cost of the project is $997 million,
  • $500 million will be financed by the AIIB
  • $310 million by the Government of Maharashtra
  • $187 million by Ministry of Railways.
• The $500 million loan from the AIIB has a 5-year grace period and a maturity of 30 years.

Need for the development in the sector

• Population
  • Mumbai Metropolitan Region (MMR) is the most populous metropolitan region in India.
    • It is expected to reach 29.3 million by 2031 and 32.1 million by 2041.
    • This needs a strong Mumbai urban development plan for the future.
• Infrastructure
  • The infrastructure planning balances with economic activities, mobility as well as the optimisation of environmental and social outcomes.
    • 86 per cent of Mumbai commuters rely on public transport. 
    • 36,688 injuries on the Mumbai suburban railway network.
    • Over crowding and trespassing are the major reasons for the accidents. 
• Pollution
  • Environment pollution is a serious threat in Metro life
    • It will help in reducing carbon emissions
    • Shifting passengers away from higher-carbon road transport towards efficient and convenient rail-based mobility.
• Safety Concern for Women
  • Female passengers will benefit from improved safety and quality of service.

Asian Infrastructure Investment Bank

Multilateral financial institution aimed at providing “financial support for infrastructure development in the Asia – Pacific region.

• To boost economic development in the region, create wealth, provide infrastructure and promote regional cooperation and partnership.
• The value of AIIB’s authorised capital amounts to $100 billion, with almost $30 billion invested by China.
• China, India and Russia are the three largest shareholders of AIIB
• Major economies that are not members include Japan, Mexico, Nigeria, and the United States.

Source : PIB

Topic

Prelims : Asian Infrastructure Investment Bank

GS II : Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

GS III : Infrastructure: Energy, Ports, Roads, Airports, Railways etc

Today’s Current Affairs Compilation : 25 August 2020