German Government’s Development Bank KfW pledged to provide a loan assistance of EUR 500 million (about Rs.3,750 crore) for the modern and sustainable metro system for Nagpur city being executed by Metro Rail Corporation Limited.
- Nagpur Metro will be the first metro rail project in India to be financed under the Indo-German partnership for clean, socially inclusive and climate-friendly mobility.
- An agreement in this regard was signed today in New Delhi by the Department of Economic Affairs and KfW. Shri S.Selvaraj, Joint Secretary, Department of Economic Affairs and Shri 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.
Nagpur Metro Project:
- The Nagpur metro is the first metro project to be financed under this partnership. The estimated total project cost is Rs 8,680
- Union Government had sanctioned in August 2014, Nagpur Metro Project envisages two corridors i.e70 km North-South section from Automotive Square to Khapri and 18.60 km long line between Prajapati Nagar and Lokmanya Nagar.
- Works commenced in 2015 and the whole Metro would be operational by March, 2019.
KfW banking group:
- A German government-owned development bank, based in Frankfurt
- KfW rated as the safest bank in the world in World’s 50 Safest Banks 2014 rating by Global Finance.