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Tuesday, December 01, 2020

German bank extends credit line for 2 lines of Mumbai Metro

A memorandum of understanding (MoU) to this effect was signed with the state government on Friday, owing to which the KfW will extend a line of credit worth 545 million euro to the Union Finance Ministry to fund Mumbai Metro Lines 4 and 4A.

By: Express News Service | Mumbai | Updated: November 7, 2020 11:07:45 am
mumbai metro, German bank extends credit line mumbai metro, Mumbai Metro new lines, mumbai city newsMumbai line 4 stretches from Wadala to Kasaravadavli, while line 4A is from Kasaravadavli to Gaimukh. (File/Representational)

The KfW, a German development bank, has extended a loan worth 545 million euro for the construction of Mumbai Metro Line 4 from Wadala to Kasaravadavli and Line 4A from Kasaravadavli to Gaimukh that will connect the island city to Thane.

A memorandum of understanding (MoU) to this effect was signed with the state government on Friday, owing to which the KfW will extend a line of credit worth 545 million euro to the Union Finance Ministry to fund Mumbai Metro Lines 4 and 4A. Negotiations for this line of credit had been ongoing for well over a year.

The Mumbai Metropolitan Region Development Authority (MMRDA), which is implementing metro lines 4 and 4A, said the credit package is made up of one development loan of 345 million euro, including 255 million euro to buy rolling stock, and another promotional loan of 200 million euro.

A sum of 90 million euro will be used for a multi-modal integration system, it said. The 545 million euro loan package of KfW is the highest amount given to India ever, that too at the lowest rate of interest offered by any financial institution so far, it added. The interest rates vary between 0.07% and 0.82%.

Mumbai line 4 stretches from Wadala to Kasaravadavli, while line 4A is from Kasaravadavli to Gaimukh. The two lines, around 35 kilometre long, will help connect the island city to Thane. The project cost of the two lines will be about Rs 23,000 crore and the KfW’s loan will amount to roughly Rs 4,000 crore.

“Although it is good to start mega transportation projects, it is more important to do financial closures and provide support to project authorities – such as making available the required land – without which projects can’t be completed,” said Maharashtra Chief Minister Uddhav Thackeray.

The MMRDA has claimed that the two metro lines are likely to ferry 13-14 lakh people once complete. About 21% of civil work on line 4 and six percent of civil work on line 4A are now complete.

“The MMRDA is also working for mitigation of climate change by executing metro projects across the Mumbai metropolitan region. Once metro lines 4 and 4A begin operations, it will help save up to 1,21,000 tonnes of greenhouse gases every year,” said MMRDA Commissioner RA Rajeev.

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