The Nagpur Metro has achieved a major landmark this week! KfW Bankengruppe, Germany’s development bank has sanctioned a loan for 500 million Euros (Rs3,716 crore) with an interest rate between 1.6% and 1.7%. The Ministry of Finance has been reported to have approved it and will issue a formal letter to the Nagpur Metro Rail Corporation Ltd (NMRCL) next week. KfW had shown interest in the metro project at multiple times in the past, so it was expected that they would follow through with the loan.
The NMRCL now needs another 100 million Euros (roughly Rs 743 cr) to meet its goals. A French government agency, Agence Francais de Developpement (AFD), had committed to provide a loan for this amount and is expected to sign the deal soon. The Nagpur Metro is expected to cost Rs 8,680 crore of which 50% will be raised through loans. The rest cost will be borne by the Central & State governments, the Nagpur Municipal Corporation (NMC) and the Nagpur Improvement Trust (NIT).
As a reminder, work on the first stretch (4.5 kms) of the Metro’s north-south line has already begun. See: Work on Nagpur’s Metro system begins!
For more updates on Nagpur’s Metro, check out the Nagpur section of the TMRG!