EIB to fund EUR 650 million for Kanpur Metro Rail project in India

Kanpur, India (Urban Transport News): The European Investment Bank (EIB) on its recent board meeting held on 15th July 2020 has approved Euro 650 million (approx. Rs 5,661 crore) for procurement of Rolling Stock and development of Kanpur Metro Rail project in India. "The project concerns is the construction and operation of an urban metro rail transit system in Kanpur, the largest industrial city of Uttar Pradesh.

EIB will finance the acquisition of rolling stock and the development of two metro rail corridors with elevated sections, totalling to 32.4 km with 31 stations (of which 19.4 km with 19 stations and 13 km with 12 underground stations)," said in an official release of European Investment Bank (EIB). The Kanpur Metro Rail project will contribute to make the Kanpur city safer and more business-friendly. By facilitating access to amenities and jobs, this low carbon and climate resilient urban infrastructure will improve the conditions for private sector development, while reducing environmental impact.

The project contributes to the two main objectives of the EIB External Mandate: (i) climate change mitigation, by promoting the 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.

In India, metro projects do not fall within the scope of the relevant Environmental Impact Assessment (EIA) legislation unless the built-up area is beyond a defined threshold, in which case the project is subject to screening by the State level Competent Authority. The status of screening, if any, is to be determined during the appraisal. The project has in any case been subject to an environmental and social impact assessment. The further steps in assessing and managing environmental risks are to be reviewed during the appraisal.

Compliance with relevant EIB Social Standards is to be reviewed. The Bank will require the promoter to ensure that the implementation of the project will be done in accordance with the Bank's Guide to Procurement. Recently, the Nodal agency Uttar Pradesh Metro Rail Corporation Limited (UPMRC) had awarded a contract worth Rs 2,051 crore to Bombardier Transportation India for the supply of 201 metro coaches and provide signalling solutions for the Kanpur and Agra Metro Rail projects.