The country's financial capital may get some relief from its crowded local suburban network with the Railway Minister granting approval for funding of Phase II of the Mumbai Urban Transport Project.

The Phase II, which focuses on developing the railway services over the next five years in the city, envisions the increase in new rakes and coaches in trains, conversion of DC electric supply to AC and additional railway lines which would help the segregation of freight and passenger services.

MUTP Phase II had run into a roadblock over funding, but later the state and Railways reached a decision on how to split the project cost of over Rs 4,500 crore (Rs 45 billion). It will also be receiving aid from the World Bank.

Railways is expected to sell a property in the suburban business district of Bandra-Kurla complex to fund MUTP. The state government is expected to grant additional Floor Space Index for the plot, which would increase its market price.

The new lines to be introduced include the two additional lines each between Chhatrapati Shivaji Terminus in south Mumbai and suburban Kurla in north-east Mumbai, between suburban stations Thane and Diwa on Central Railways, and one line between Mumbai Central and Borivali on Western Railways.

New-age rakes, which had been introduced on the suburban railway network, will also be increased. The DC to AC conversion of the electric lines for the suburban rail network is also expected to increase savings as well as improve speed. However some portions of MUTP Phase I, including the laying of new lines between Mahim and Santacruz on Western Railways are still to be completed.

Railway Budget: 2008-09