Union Cabinet has approved the policy guidelines to allow financially sound State Government entities to borrow directly from the external bilateral funding agencies for implementation of vital infrastructure projects.<br/><br/>The Mumbai Metropolitan Region Development Authority has also been allowed to borrow directly from Japan International Cooperation Agency (JICA) for implementation of Mumbai Trans Harbour Link project. The estimated cost of the project is 17,854 crore rupees, out of which JICA loan portion is expected to be 15,109 crore rupees.<br/><br/>The concerned State Government will furnish guarantee for the loan and the Centre will provide counter guarantee for the loan. Several State agencies are implementing major infrastructure projects of national importance.<br/><br/>To accelerate the pace of investment in major infrastructure projects an enabling provision in the existing guidelines was considered necessary to facilitate direct borrowing by the State Government entities from bilateral external agencies. The existing guidelines do not allow direct borrowings by the State Government entities from external agencies.