In a bid to develop an efficient, safe, economic metro system in Pune, the Government of India and European Investment Bank (EIB) on May 7 signed a financial contract for the second tranche of €150 million through a virtual signing ceremony.
The signing ceremony was held in the presence of H.E. Francisco Andre, Secretary of State for Foreign Affairs and Cooperation, Portugal and H.E. 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 EIB.
EIB agreed to provide a loan amount of €600 million to fund the Pune Metro Rail project. The Finance Contract for the first portion of €200 million loan was signed between the Centre and EIB on July 22, 2019. The project aims to provide an efficient, safe, economic and pollution-free Mass Rapid Transit System in the densely populated area of Pune city.
The financing from EIB will help to fund construction and operation of Corridor 1 (North-South) – Pimpri Chinchwad Municipal Corporation (PCMC) to Swargate and Corridor 2 (West-East) –Vanaz (Kothrud) to Ramvadi, totalling about 31.25 kilometres and related purchase of a related fleet of metro cars. Further, the project will serve a large population that consists of the working class in providing urban mobility for their livelihood. The Maharashtra Metro Rail Corporation Ltd. (MAHAMETRO) is the implementing agency for this project.