Nagpur Metro Rail to get Rs 3,700 crore loan from KfW, Germany

NAGPUR: Nagpur Metro Rail Corporation Ltd (NMRCL) will receive a loan to the tune of 500 million euro (Rs 3,700 crore) from German government-owned development bank KfW, as a part of fund required for the project.

Department of Economic Affairs, Ministry of Finance, has cleared the loan proposal from KfW Germany last week, NMRCL managing director Brajesh Dixit told reporters here today.

The proposal was under consideration of the Central government and was cleared on September 11, he said.

Dixit said an additional 60 million euro (Rs 444 crore) loan will also be provided for funding the proposed feeder service and solar energy installation of Nagpur Metro Rail on mere concessional terms of KfW Germany.

Remaining requirement of about 130 million euro loan for the entire project was expected to be met by AFD France, as per the advice of the Department of Economic Affairs, Dixit added.

Teams of both the financial institutions, KfW and AFD, have already visited the city for appraisal and evaluation of the project for their satisfaction.

KfW team will visit again some time in October to the proposed site to further advance the process of grant of loan and finalise the terms and conditions.

After the visit, a final agreement will be signed in New Delhi between the government and the loan provider agency by late November or early December.

To a query, Dixit said about 77 per cent of the total land requirement has been acquired and remaining will be acquired soon.