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Germany’s KfW to provide 500 million euro loan to Nagpur Metro
New Delhi, April 1, 2016
KfW, the German government's development bank, will provide a loan assistance of euro 500 million (about Rs. 3,750 crore) for the Nagpur metro project.
The project is being executed by the Nagpur Metro Rail Corporation Limited (NMRCL).
The agreement in this regard was signed here today by Mr. S. Selvaraj, Joint Secretary, Department of Economic Affairs, Ministry of Finance and Mr. Roland Siller, Director General of KfW.
German Ambassador Martin Ney, Mr. Mukund Sinha, Officer on Special Duty (Urban Transport) in the Ministry of Urban Development, and Nagpur Metro Managing Director Brijesh Dixit were amongst those present on the occasion.
The loan period is 20 years with a moratorium of five years and disbursal will be based on the progress of the project over three years, an official press release said.
Costing Rs. 8,680 crore (euro 1,240 million), the Nagpur Metro is the first metro to be financed under the Indo-German partnership for clean, socially inclusive and climate friendly mobility for people in cities.
Sanctioned by the Government of India in August 2014, Nagpur Metro Project envisages two corridors -- a 19.70 km North-South section from Automotive Square to Khapri and a 18.60 km line between Prajapati Nagar and Lokmanya Nagar.
Physical works commenced in May, 2015 and the whole Metro would be operational by March, 2019, the release added.