EIB proposes €650 million loan for Kanpur Metro Rail project in India

Lucknow, India (Urban Transport News): The European Investment Bank (EIB) has proposed to provide financial assistance of €650 million for the Kanpur Metro Rail project after assessing the project. The total estimated cost of the project is €1.5 billion. "The Government of India (GOI) has applied for a loan from the European Investment Bank (EIB) towards the cost of the Kanpur Metro Rail Project and it intends to apply part of the proceeds to payments for goods, works, related services and consulting services to be delivered under this project.

The project will be most probably jointly financed by the (EIB) with the Government of India and Government of Uttar Pradesh," said in the statement. "The project contributes to the two main objectives of the EIB External Mandate: (i) climate change mitigation, by promoting a modal shift from road to the 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 needs to address rising greenhouse gas emissions", mentioned in the statement issued by EIB.

The Kanpur Metro Rail project concerns the construction of a metro line of about 32.385 km with 30 stations and related procurement of metro cars in the city of Kanpur, Uttar Pradesh, India. Construction of the first priority corridor under phase I of the Kanpur Metro Rail project already started on 15th November 2020. Under the 2020-2021 budget, the state government has allocated EUR 46.6 million for the first phase of the project.

This first phase involves the construction of a line connecting IIT Kanpur and Naubasta, while the second corridor will provide the metro link between Agriculture University to Barra-8. Earlier in 2016, Japanse financing body Japan International Cooperation Agency (JICA) had assessed the Kanpur Metro Rail project and expressed an interest to provide funding assistance. For more details, please visit our Kanpur Metro section.