German Bank KfW sanctions Rs 3,464 crore loan for Surat Metro Phase 1

Surat, India (Urban Transport News): The german bank KfW has sanctioned 442.26 million euros (Rs 3,464 crore) for the under-construction Surat Metro Rail Project (Phase 1). The loan agreement was signed in New Delhi between KfW and the Department of Economic Affairs on December 17, 2021.

The Phase 1 of Surat Metro was sanctioned for a total length of 40.35 km and is expected to cost a total of Rs 12,020.32 crore. Of the total project cost, Rs 5,434 crore will be financed through an ODA loan.

Earlier in January this year, French Development Bank AFD agreed to fund 250 million euros (approximately Rs 1,970 crore) for the Surat Metro's Phase 1. The Govt. of India and Govt. of Gujarat will provide Rs 1,487 crore (each).

The foundation stone for the phase 1 corridors of Surat metro was laid virtually by Prime Minister Narendra Modi on January 18, 2021. The project is expected to be completed by 2024.

So far tenders worth Rs 3,002 crore have been awarded for the first phase of Surat Metro and work has started on the 21.58 km corridor between Sarthana and Dream City. The second corridor of 18.74 km will be build between Bhesan and Saroli. Over 676 families are expected to be affected by the project in Surat city for which Gujarat Metro Rail Corporation (GMRC) has sanctioned a rehabilitation package of Rs 375 crore.

GMRC (which is a 50:50 joint venture between the Central Govt and the State Govt) is implementing the Surat Metro Rail Project.