KfW, Germany signed agreement of lending with DEA for Nagpur Metro

The German Government’s Development Bank KfW on a mandate from the Federal Ministry for Economic Cooperation and Development (BMZ) has signed a Loan Agreement for EUR 500 million (roughly Rs.3750 Crores) to co-finance the proposed modern and sustainable metro system for Nagpur city by Nagpur Metro Rail Corporation Limited (NMRCL), a Special Purpose Vehicle set up jointly by Maharashtra State Government and Ministry of Urban Development (MOUD), Government of India. The estimated total project cost is INR 8,680 crores/ EUR 1,240 million. In India, Nagpur Metro is the first metro to be financed under the Indo German partnership for clean, socially inclusive and climate friendly mobility for people in cities.

NMRCL has been able to tie-up this loan, primarily due to very strong support from Government of Maharashtra, Ministry of Urban Development (MoUD) and Government of India (GOI)- DEA. In just ten months since June 2015, Nagpur Metro has progressed speedily to get funds approved from KfW for its project. KfW Bank has agreed to lend 500 million Euros loan for 20years with a moratorium of five years. The amount will be disbursed periodically as per progress of the project over three years.   

The project envisages use of KfW funds towards building two metro corridor lines 1) North -South Corridor from Automotive Square to Khapri (19.7 km) and 2) East-West Corridor from Prajapati Nagar to Lokmanya Nagar (18.6 km). These two corridors are divided into four main reaches. KfW would specifically consider financing, Rolling Stock, Traction, Taracks, Viaduct for Reaches 2 and 4 elevated stations. The project physical works were commenced in May 2015, with award of civil works contract for the 4.6km at-grade section which was followed by award of civil contract of 5.6km. The metro lines will be commissioned progressively, with the southern and western links expected to be completed and operational by June 2018 and September 2018, respectively. The remaining two links will be completed and the whole Metro would be operational by March, 2019.

The agreements were signed by Mr.S.Selva Kumar, Joint Secretary Department of Economic Affairs, and Mr. Roland Siller, Director General, KfW in the presence of dignitaries, German Ambassador Dr. Martin Ney. The signing ceremony was attended by Joint Secretary, Ministry of Urban Development, Mr. Mukund Kumar Sinha, Mr. Brijesh Dixit, Managing Director, NMRCL, Mr S Ramnath, Executive Director, NMRCL, Head of Division Economic Cooperation and Development, German Embassy, Ms. Susanne Dorasil and Mr. Peter Hilliges, Director, KfW Office, Delhi.

After signing of Loan Agreement with the Centre today at Delhi, NMRCL will sign a project agreement in Nagpur/Mumbai since the project is being executed in Nagpur.

“Metros are an essential backbone of modern urban public transport systems. Bringing our knowledge and funding to this project, KfW will contribute to cleaner air, better climate and enhanced mobility for the citizens of Nagpur”, said Roland Siller, Director General of KfW.

“With finance in place, timely support of  Government of Maharashtra, Ministry of Urban Development (MoUD) and Government of India (GOI)- DEA and excellent team work I see no reason why Nagpur Metro should not be completed well in time” said Mr Dixit, MD, NMRCL on the occasion.

About NMRCL:

NMRCL is a Special Purpose Vehicle (SPV) created for the smooth implementation and operations of the Nagpur Metro Rail Project and is a joint venture of Government of India & Government of Maharashtra, with 50:50 equity. NMRCL shall be solely responsible for the successful and timely completion of the project & its operations subsequently. Nagpur Metro Rail Corporation Limited was incorporated by Govt. of India- Ministry of Corporate affairs on 18th February 2015.  It aims to provide a safe, reliable, efficient, affordable, commuter friendly and environmentally sustainable rapid public transport system for the Nagpur Metro Region to improve the quality of life of the citizens of Nagpur. While civil works for ~12kms have already commenced, NMRCL has already been allotted Rs.603 crores

(incl. Pass through Assistance of Rs.450crores) by GOI in FY16-17 & Rs.176 crores has been allotted by GOM in FY16-17.

About KfW: German Financial Cooperation is channeled through KfW, which acts as an implementing agency on behalf of the German Government. KfW is fully owned by the Federal Republic of Germany and is one of the largest banks in Germany.

Germany and KfW are longstanding partners of India. Since the 1950s, more than 12 billion EUR has been sanctioned by the German Government through KfW, mainly in the fields of Energy, Financial Sector Development, Health, and Protection of the Environment and Natural Resources and recently, in urban development and mobility sub sectors. The main objective of the German Government is to work together with the Indian Government in facilitating inclusive growth, reducing poverty and protecting the environment and climate.

·       Nagpur Metro has been reaching out to the citizens of Orange city through novel concept of social media; face book & twitter. More than 1,51,000 likes on face book is a testimony to the inclusive approach by Nagpur Metro. More and more members are joining in the ‘Friends of Nagpur Metro’ and ‘ Nagpur Metro Fan Club’

·       Nagpur Metro has been organising ‘Metro Samvaad’, an interactive session with the citizens at every station area an inclusive approach by Nagpur Metro.

·       At grade work of Nagpur Metro at Airport, New Airport, MIHAN is progressing in full swing

·       Work of elevated viaduct from Pride Hotel to Munje Square has commenced near Pride Hotel on Wardha Road. This 6 km stretch of construction of Corridors and foundation laying for Metrorail on the median verge of the road will be completed by end of 2016

·       Planning & Designing work of nine stations between Airport & Congress Nagar has been allotted to L & T Associates and relevant work order has been issued for early commencement of the work.

·       Kasturchand Park heritage land issue has been solved with the approval of allotting the required 408 sq. mt. land to Nagpur Metro

·       Hindrance at Nagpur Railway station has been removed. Nagpur Metro shall be running through the Ramzulla using articulate design that will act as landmark architecture.

·       General Consultants shall be appointed soon.