India’s infrastructure investments get a boost from Europe’s EIB
The Pune Metro Rail project gets an extra financial injection to keep it on track. The EIB has supported projects on climate action, sustainable economic development, COVID-19 recovery, digital economy, infrastructure development, as well as MSME’s in the country.
India’s push to develop world-class infrastructure got a further boost last week when the Indian government and the European Investment Bank (EIB) signed the finance contract for the second tranche of 150 million euros for the Pune Metro Rail project.
The virtual signing ceremony was presided over by Portugal's Secretary of State for Foreign Affairs and Cooperation, Francisco Andre, and EIB President Werner Hoyer, with Additional Secretary, Economic Affairs, K. Rajaraman, signing the loan on behalf of India, and EIB Vice President Christian Kettel Thomsen, on behalf of the EIB.
The EIB, which has been active in India since 1993, has supported a wide range of projects on climate action, sustainable economic development, COVID-19 recovery, digital economy, infrastructure development, as well as small and medium-sized enterprises in the country.
READ MORE ON INDIA & EU:
Warm vibes between India-EU thaw the frozen positions of the past
India-EU resume negotiations for comprehensive trade deal
EU and India build further bonds via plastics
Why India and EU plan to roll out a global infrastructure deal
India's relaxed rules on investment for insurers set to trigger interest from EU, US
The bank had approved a total loan of 600 million euros to fund the Pune Metro Rail project, with the finance contract for the first tranche of 200 million euros signed on July 22, 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 – bringing to life yet another clean energy mass mobility project across Indian cities.
Full-scale construction on the cards
The financing will help 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, for a total distance of 31.25km and related purchase of a fleet of metro carriages. The project will also serve a large segment of the Pune population in providing urban mobility for their livelihood. The Maharashtra Metro Rail Corporation Ltd (MAHAMETRO) is the implementing agency for the project.
The contract follows the EIB's announcement last week of an emergency financial assistance of 250,000 euros to support India's response to the Covid-19 crisis. The announcement was made a day ahead of a virtual meeting between Indian Prime Minister Narendra Modi and the heads of state or government of all the 27 European Union member states.