European Investment Bank team visits Lucknow Metro project site

A three member European Investment Bank (EIB) team on Wednesday visited the Lucknow Metro Rail project sites to review the progress of the civil works.

EIB is providing loan of over Rs 3,500 crore to the project. Its team comprised EIB country head Sunita Lakkhoo, deputy economic advisor Piers Vickers and Venkat Rao Banaya.

The team accompanied by Lucknow Metro Rail Corporation (LMRC) officials reviewed the progress for the 8.5 km long 'priority corridor' from Transport Nagar (near Lucknow airport) to Charbagh railway station.

An LMRC spokesperson said EIB had expressed satisfaction over the fast execution of the project, in view of the tight deadline set by the Akhilesh Yadav government. The project is expected to start commercial operations in one of its sections by mid 2017, while the trials are expected to begin by December 2016 itself.

Meanwhile, EIB would soon be releasing the first tranche of loan amount approved for the project.

Earlier, a loan agreement worth over Rs 3,500 crore had been signed between the Centre and EIB for the Lucknow Metro project in Brussels on March 30. The agreement was firmed up during the visit of Prime Minister Narendra Modi to Brussels (Belgium) for the 13th India-EU Summit last month.

The loan agreement was worth 450 million Euros, which was agreed to be released in two tranches of 200 million Euros and 250 million Euros.

The loan is required for procuring 80 metro coaches (rolling stock) for the complete 23 km North-South metro corridor starting from Charbagh to Munshipulia. The pre-final design of coaches have been finalised and the train is likely to arrive by October 2016.

Meanwhile, the LMRC board has approved allotment of equity shares of Rs 100 each to the central and the state governments in the equity share capital of the company.