Desai Anjal Pradipkumar

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The Financial appraisal of Colaba – Bandra – SEEPZ MRT Corridor in Mumbai has been carried out within the broad framework of Social Cost –Benefit Analysis Technique. It is based on the incremental costs and benefits and involves comparison of project costs and benefits in economic terms under the “with” and “without” project scenario. In the analysis, the cost and benefit streams arising under the above project scenarios have been estimated in terms of market prices and economic values have been computed by converting the former using appropriate shadow prices. This has been done to iron out distortions due to externalizes and anomalies arising in real world pricing systems. The annual streams of project costs and benefit have been compared over the analysis period of 34 years to estimate the net cost/ benefit and to calculate the economic and financial viability of the project in terms of FIRR (Financial Internal Rate of Return).