Nagpur: In a major boost for the Nagpur metro rail, French government agency Agence France de Development (AFD) has in principle sanctioned a 130 million Euro loan (about Rs 900 crore) for the project. A team of AFD will be on a two-day visit to Nagpur to review the progress of the project.
A source in Nagpur Metro Rail Corporation Limited (NMRCL), told Media that the details of the loan were to be worked out. “German agency KfW has also sanctioned us a loan and their rate of interest is likely to be between 1.6% and 1.7%. The loan will be for 20 years and there will be a moratorium on loan payment for few years. AFD’s terms and condition will be similar,” he said.
NMRCL needed a loan of 630 million Euros for meeting the 50% cost of the metro rail project. Another 60 million Euro was required for the feeder bus service and solarization of the project. KfW has sanctioned 500 million Euro for the project and has agreed to give another 60 million for feeder service. The remaining 130 million Euro will now be paid by AFD.
The metro rail project is progressing at a satisfactory pace but sanction of funds by the state government has become a niggling worry. Central government has sanctioned 37 crore and the state has in principle ayed another Rs 84 crore. However, state government’s component is yet to reach NMRCL. The NMRCL source said that the government officials had assured that the money will be disbursed soon.
The state government has so far shown speed in clearing the proposals pertaining to metro rail. However, it is delaying the disbursement for reasons best known to it.
On the physical front, NMRCL has started the construction of metro rail in Mihan. Work on Wardha Road, opposite the airport, will start in a few days. Nagpur Municipal Corporation (NMC) has already removed street light poles that were in the middle of the road.