MoF-KfW Signs Rs.3772 Crore Loan Agreement for Nagpur Metro.

In a major boost to dream Metro Rail Project of Nagpur, Central Government and KfW Bank of Germany on Friday signed an agreement through which the Metro project will receive Rs. 3,500 crore loan from the bank. The agreement was signed by S Selvakumar, Joint Secretary, Department of Economic Affairs and Roland Siller, Director General of KfW in the presence of German Ambassador Dr Martin Ney, OSD (Urban Transport) in the Ministry of Urban Development Mukund Sinha, Managing Director of Nagpur Metro Rail Corporation Limited (NMRCL) Brijesh Dixit and others.

According to the agreement, German Government’s Development Bank KfW has provided a loan assistance of Rs 3,750 crore (Euro 500 million) for the modern and sustainable metro system for Nagpur city being executed by NMRCL. KfW Bank has agreed to provide the loan for a period of 20 years with a moratorium of five years. The amount will be disbursed periodically as per progress of the project over three years. The Rs. 3750 crore loan will be utilized for building of Metro Rail coaches, route, power supply, traction and other works. A separate agreement will be signed between NMRCL and KfW Bank within seven days. The place and date will be decided soon.

The Nagpur metro is the first metro project to be financed under this partnership. The estimated total project cost is Rs 8,680 crore (Euro 1250 million). Sanctioned by the Government of India in August 2014, Nagpur Metro Project envisages two corridors i.e 19.70 km North-South section from Automotive Square to Khapri and 18.60 km long line between Prajapati Nagar and Lokmanya Nagar. Physical works commenced in May, 2015 and the whole Metro would be operational by March, 2019.

www.railnews.co.in