The Government of India and European Investment Bank (EIB) signed the finance contract for the second tranche of Euro 150 million (about Rs 1,350 crore) for the Pune Metro Rail project through a virtual ceremony. Maharashtra Metro Rail Corporation Ltd. (Maha Metro) is the implementing agency for this project.
EIB had approved the total loan of Euro 600 million (about Rs 5,400 crore) 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 July, 2019. The project aims to provide an efficient, safe, economic, and pollution-free Mass Rapid Transit System in densely populated areas 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) – Pimpri Chinchwad Municipal Corporation (PCMC) to Swargate and Corridor 2 (West-East) –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 mainly of the working class in providing urban mobility for their livelihood. The total cost of the Pune Metro Rail project is Rs 11,420 crore.