The European Investment Bank (EIB) on Friday signed a loan agreement with Maharashtra Metro Rail Corporation for releasing the first tranche of 200 million euros (Rs 1600 crore) for the ongoing metro projects in Pune.
The bank has agreed to extend 600 million euros (Rs 4,800 crore) in loan to Maharashtra Metro Rail Corporation (Maha Metro) which is developing two metro lines in Pune and Pimpri Chinchwad.
"The funding from EIB will give the much needed boost to the metro projects in Pune and will ensure speedy execution," Chief Minister Uddhav Thackeray said.
Development of areas in and around Pune was key to Maharashtra's growth and the metro projects will play a crucial role for the same, he added.
Maha Metro is developing two metro lines in Pune at a cost of Rs 11,400 crore.
Of this, Rs 5,800 crore would be the loan component, which will be partially funded by EIB at a concessional rate of 0.35 per cent per annum for 20 years with a moratorium of four years.
The remaining would be contributed by French Development Agency (AFD).
These funds would be utilised for construction of civil structures, underground tunnels and stations.
Pune's two metro systems will have 31 km of tracks, both over and underground, with a total of 30 stations.
Once completed, the metro rails will create 900 new jobs and carry around 6 lakh passengers daily.
Speaking at the event, Maha Metro Managing Director Brijesh Dixit said nearly 37 per cent of the civil works of the metro projects has been completed.
"These metro stations will have a reflection of Pune's culture. At the same time, we will ensure that we are sensitive towards environment and the aesthetics," he added.
EIB Vice President Andrew McDowell said, "after funding the Bengaluru and Bhopal metro projects in the past, we are now providing finance to Pune Metro, which is the largest one so far in the transport space.
Given the country's commitment to develop infrastructure and environment protection, India becomes our natural partner.
Disclaimer: No Business Standard Journalist was involved in creation of this content
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