New Delhi: The World Bank has lifted the suspension of its financing of the Mumbai Urban Transport Project (MUTP). The World Bank president, Paul Wolfowitz communicated the bank's decision through a letter to the Union finance minister, P. Chidambaram.
An official release said that Wolfowitz also conveyed the bank's positive assessment of the progress on the project's action plan. The MUTP is a critical component of the initiative of turning Mumbai into a world-class city.
On March 1, 2006, the bank had suspended funding of two components of the MUTP, namely resettlement and road development, expressing its concern about rehabilitation of affected people. The two components involved bank assistance of Rs1,031 crore.