New Delhi/Nagpur, April 2: Germany’s Development Bank KfW Friday signed a loan agreement for Euro 500 million (approximately Rs 3,750 crore) to finance the proposed Nagpur Metro Rail Project.
Department of Economic Affairs Joint Secretary S Selvaraj and KfW Director General Roland Siller inked the agreement in this regard here.
The estimated total project cost is Rs 8,680 crore (Euro 1,240 million). Rest of the funds would come from the Centre, the state government as well as the civic body.
The loan would be for 20 years with a moratorium of five years and the amount will be disbursed periodically as per progress of the project over three years, an official release said.
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”, it said.
Sanctioned by the central government in August 2014, Nagpur Metro Project envisages two corridors — 19.70 km North-South section from Automotive Square to Khapri and 18.60 km long line between Prajapati Nagar and Lokmanya Nagar.
With physical works having started in May last year, the Metro project is scheduled to be operational by March 2019.
