Bhopal, India (Urban Transport News): In a major decision to speed up the construction work of the Bhopal Metro Rail project, the European Investment Bank (EIB) today approved 400 million euros (Rs 3200 crores) loan in favour of Madhya Pradesh Metro Rail Company Limited. The loan agreement will be signed once the operations of international flight resumed.
The loan formalities have been completed by the Government of India, Government of Madhya Pradesh, MP Metro Rail Company and EIB. A senior official of the MP Metro Rail Company has confirmed that EIB will provide a loan of 400 million euros (Rs 3200 crore). The EIB gave an in-principle agreement in the last week of November.
After this, the Government of India, Government of Madhya Pradesh, and Madhya Pradesh Metro Rail Company have completed the formalities on their behalf. The officials of the Metro Rail Company said that, if the lockdown had not happened, the contract would have been signed earlier. Sources said that there is no payment to be made during the construction phase of the Bhopal Metro Rail project. All the necessary formalities have been completed for this.
The loan agreement will be signed by all concerned in the headquarters of EIB. Earlier, the Japanse financing body Japan International Cooperation Agency (JICA) had also shown interest to fund the Bhopal Metro Rail project on an interest rate of 0.3 percent with certain conditions. The conditions were to buy 30 percent material from the Japanse company and further buying the 30 percent material from the joint venture companies between Japan and India.
But, the Government of Madhya Pradesh had refused to accept the terms and conditions as proposed by JICA. In last week, the team of Dilip Buildcon Limited has resumed the work at their casting yard to facilitate the construction of a 6.225 km long viaduct on Corridor-2 of Phase 1 of Bhopal Metro Rail project.