EIB inks loan pact to fund Pune Metro Rail project
The funds from EIB will be used for 3.5 km long underground Metro corridor work
The European Investment Bank (EIB) has inked a loan agreement with the Maharashtra Metro Rail Corporation (Maha Metro) for Pune Metro Rail project. This is the second deal, under which EIB will provide a sum of Rs 1,600 crore (EUR 200 million) assistance to Maha Metro for construction of the Pune Metro Rail project.
Earlier, EIB had signed an agreement with the Union government for providing a loan of Rs 1,600 crore for the same project. The funds released by EIB will be mainly used for 3.5 km long underground Metro corridor work which is between Agricultural College and Swargate.
The Pune Metropolitan Region Development Authority (PMRDA) has already taken a loan of EUR 245 million from the French Development Agency (AFD) for the Pune Metro project on 28 January 2019.
The funds from EIB will be utilised to finance civil works including the underground section and depot works. The tenure of the loan is 20 years with four-year moratorium and 16-year repayment period. The interest rate is floating and linked to Euribor.
The EIB will infuse a total of Rs 4, 800 crore (EUR 600 million) in construction of two new lines of the Pune Metro rail project and procurement of 102 modern Metro coaches. The Pune Metro Rail project team has completed about 37% construction work in a record time of 30 months.