German Government’s Development Bank KfW will provide a loan assistance of EUR 500 million (about Rs.3,750 cr) for the modern and sustainable metro system for Nagpur city being executed by Nagpur Metro Rail Corporation Limited (NMRCL).
An agreement in this regard was signed in New Delhi by the Department of Economic Affairs and KfW S.Selvaraj, Joint Secretary, Department of Economic Affairs and Roland Siller, Director General of KfW.
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.
Costing Rs.8,680 cr (EUR 1,240 million), 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.
German Ambassador Dr.Martin Ney, OSD (Urban Transport) in the Ministry of Urban Development Mukund Sinha, Managing Director of Nagpur Metro Brijesh Dixit and others were present on the occasion of signing of agreement.
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.