German development bank KfW has signed a loan agreement for 500 million euro (about Rs 3,750 crore) to co-finance a proposed metro system for Nagpur city. KfW Bank has agreed on a repayment schedule spread over 20 years, with a 5-year moratorium. The amount will be disbursed periodically as per progress of the project over three years.
The project will be developed by Nagpur Metro Rail Corporation Limited (NMRCL), a Special Purpose Vehicle (SPV) set up jointly by Maharashtra Government and the central Ministry of Urban Development. The total project is estimated to cost Rs 8,680 crore, or about 1,240 million euro.
“The loan has come as very important step in our project development. The project will be completed within the stipulated budget allocation and time frame using this loan," NMRCL managing director Brijesh Dixit said.
The metro project will include 38.215 km metro corridor, 36 stations and 2 depots. The entire stretch will be divided into two so-called ‘alignments’, or corridors.
The project will use KfW funds for building two corridors: the North-South line from Automotive Square to Khapri (19.7 km) and the East-West line from Prajapati Nagar to Lokmanya Nagar (18.6 km). These two corridors are divided into four main reaches. KfW will specifically consider financing, rolling stock, traction, tracks, viaduct for two reaches and four elevated stations.
The project work started in May 2015, with award of civil works contract for the 4.6 km at-grade section which was followed by award of civil contract of 5.6 km. The metro lines will be commissioned progressively, with the southern and western links expected to be completed and operational by June 2018 and September 2018, respectively. The remaining two links will be completed and the full network is expected to be operational by March 2019.