Govt of India, EIB sign €150 million loan agreement for Pune Metro Rail Project

New Delhi, India (Urban Transport News): The Government of India and European Investment Bank (EIB) on May 7, 2021, have signed the loan agreement for the second tranche of Euro 150 million for the Pune Metro Rail project through a virtual signing ceremony.

The signing ceremony was held in the presence of H.E. Mr. Francisco Andre, Secretary of State for Foreign Affairs and Cooperation, Portugal and Werner Hoyer, President EIB. 

K. Rajaraman, Additional Secretary, Department of Economic Affairs, Ministry of Finance, signed the loan on behalf of the Government of India and Christian Kettel Thomsen, Vice-President, signed the loan on behalf of European Investment Bank (EIB).

EIB had approved the total loan of Euro 600 million to fund the Pune Metro Rail project. The Finance Contract for the first tranche of Euro 200 million was signed between GoI and EIB on 22.7.2019. The project aims to provide an efficient, safe, economic and pollution-free Mass Rapid Transit System in a densely populated area in the city of Pune served with heterogeneous traffic options.

The financing from EIB will help to fund the construction and operation of Corridor 1 (North-South) from Pimpri Chinchwad Municipal Corporation (PCMC) to Swargate and Corridor 2 (East-West) from Vanaz (Kothrud) to Ramvadi, totaling about 31.25 kilometers (km) and related purchase of a related fleet of metro cars. Further, the project will serve a large population consisting of the working class in providing urban mobility for their livelihood.

The Maharashtra Metro Rail Corporation Ltd. (Maha Metro) is the implementing agency for this project.