EIB Evaluating €650 mn Loan for Kanpur Metro Phase 1

The European Investment Bank (EIB)’s updated website indicates that on March 10, 2020 it started appraising a €650 million (approx. Rs. 5406.50 crore) loan for financing the rolling stock and development of Kanpur Metro’s 32.385 km Phase 1 project.

EIB has been in talks with Uttar Pradesh Metro Rail Corporation Ltd. (UPMRCL) since April 2016 when a 3-member team visited the city and indicated their interest in funding the project.

Kanpur Metro’s Phase 1 with 2 lines and 31 stations was approved by India’s Central Government on 28 February 2019 with an estimated cost of Rs. 11,076.48 crores. This loan represents 48.81% of the total cost, and the rest is expected to be financed by the state and central governments.

Objectives: The new metro will contribute to make Kanpur safer and more business-friendly. By facilitating access to amenities and jobs, this low carbon and climate resilient urban infrastructure will improve the conditions for private sector development, while reducing environmental impact. The project contributes to the two main objectives of the EIB External Mandate: (i) climate change mitigation, by promoting modal shift from road to rail while reducing greenhouse gas emissions, and (ii) social and economic infrastructure development, by contributing to urban development. The project is in line with the EU Country Strategy Paper for India which highlights the infrastructure gap and need to address rising greenhouse gas emissions.

In the recent 2020-21 budget announcement, the Uttar Pradesh state government allocated Rs. 358 crore for the project. Afcons Infrastructure started construction work on Line-1’s 8.728 km Priority Corridor (IIT Kanpur – Motijheel) back in November 2019 and had made significant progress with erecting pier caps in record time until the ongoing COVID-19 lock-down brought all construction work to a halt.

Phase 1 involves the construction of 2 lines with a mix of elevated and underground sections – view detailed information.

• Line 1 – IIT Kanpur to Naubasta (23.785 kms, 22 stations)
• Line 2 – Chandra Shekhar Azad University to Jaurali (8.6 kms, 9 stations)

If and when approved by EIB’s board, Kanpur Metro’s €650mn loan will become EIB’s 5th transport loan in India and its largest transport loan outside Europe. Other 4 in India include:

• Lucknow Metro – €450 million agreement signed in March 2016
• Bangalore Metro – €500 million (€300m agreement signed in October 2017)
• Bhopal Metro – €400 million approved in December 2019
• Pune Metro – €600 million agreement signed in January 2020

For more updates, check out the Kanpur section of The Metro Rail Guy!

– TMRG