KfW, German government’s development bank, has signed a loan agreement for euro 500 million (Rs 3,750 crore) to finance the proposed Nagpur metro rail. The estimated project cost is Rs 8,680 crore. The remaining funds would come from the Centre and the state government.
The project will be developed by Nagpur Metro Rail Corporation (NMRCL), jointly set up by the Maharashtra government and the Union urban development ministry. The project will consist of a 38-km metro corridor, 36 stations and two depots.
Funding from KfW will be used for building the 19.7-km between Automotive Square and Khapri and another one from Prajapati Nagar to Lokmanya Nagar (18.6 km).
The metro lines will be commissioned progressively, with the southern and western links expected to be completed and operational by June 2018 and September 2018, respectively.
The whole project would be operational by March 2019.
“Metros are an essential backbone of modern urban public transport systems. Bringing our knowledge and funding to this project, KfW will contribute to cleaner air, better climate and enhanced mobility for the citizens of Nagpur,” said Roland Siller, director-general, KfW.
NMRCL managing director Brijesh Dixit said: “The loan has come as a very important step in our project development. The project will be completed within the stipulated budget allocation and time-frame using this loan.”