EIB Sanctions 2nd Tranche of Rs 1,350 Cr Loan for Pune Metro Rail Project

The Government of India (GoI) and the European Investment Bank (EIB) has recently signed the finance contract for the second tranche of Euro 150 million (about Rs 1,350 crore) for the Pune Metro Rail project via a virtual ceremony.

May 10, 2021. By Manu Tayal

The Government of India (GoI) and the European Investment Bank (EIB) has recently signed the finance contract for the second tranche of Euro 150 million (about Rs 1,350 crore) for the Pune Metro Rail project via a virtual ceremony.

For this project, Maharashtra Metro Rail Corporation Ltd (Maha Metro) has been the implementing agency.

The signing ceremony was held in the presence of Francisco Andre, Secretary of State for Foreign Affairs and Cooperation, Portugal and Werner Hoyer, President EIB.

The loan agreement was signed by K. Rajaraman, Additional Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of Government of India, and Christian Kettel Thomsen, Vice-President, on behalf of EIB.

Commenting on the agreement, Dr Brijesh Dixit, Managing Director of Maharashtra Metro Rail Corporation Ltd, said, “this fund is very much to keep the pace of Pune Metro project.”

EIB had approved the total loan of Euro 600 million (about Rs 5,400 crore) to fund the Pune Metro Rail project. The Finance Contract for first tranche of Euro 200 million was signed between GoI and EIB in July, 2019.

The project aimed to provide efficient, safe, economic and pollution-free Mass Rapid Transit System in densely populated area in Pune served with heterogeneous traffic options.

The financing from EIB will help to fund construction and operation of Corridor 1 (North-South) - Pimpri Chinchwad Municipal Corporation (PCMC) to Swargate and Corridor 2 (West-East) –Vanaz (Kothrud) to Ramvadi, totaling about 31.25 km and related purchase of a related fleet of metro cars.

Further, the project will serve large population which consisting working class in providing urban mobility for their livelihood.

Meanwhile, the total cost of the project is Rs 11,420 crore, out of this Pune Municipal Corporation (PMC) and PCMC each have been sharing 5 per cent cost while GoI and Government of Maharashtra (GoM) have been sharing 20 per cent cost each.

While, the remaining 50 per cent cost i.e. Rs 5,831.5 crore has to be met through loan by EIB and Agence Francaise de Developpement (AFD).

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