Mumbai: Metro lines 4 and 4A get loan of 545 million euros

This picture has been used for representational purposes

The German Federal Ministry for Economic Cooperation and Development (BMZ) - KfW approved two loans for a total of Euro 545 million to the Indian Ministry of Finance to fund Metro Line 4 (Wadala to Kasarvadavli) and Line 4 A (Kasarvadavli-Gaikmukh). About 21% of the civil work on line 4 and 6% of civil work on line 4A are now complete.

MMRDA officials said Euro 255 million would be used to purchase rolling stock and an integrated ticketing system and Euro 90 million would be utilised on a multimodal integration system. After negotiations, the rate of interest on Euro 345 million is 0.29% and 0.07%. While on Euro 200 million the rate of interest is 0.82%. This is the highest amount given to India ever before, that too at the lowest rate of interest offered by any financial institution so far.

Speaking on the occasion, chief minister Uddhav Thackeray said, "Though it is good to take decisions to start mega transportation projects, it is more important that we conduct financial closures and provide all support to project authorities such as making available the required land, etc, without which projects can't be completed. I am happy that now Lines 4 and 4A do not have any major hurdle and hope that these will be completed on time.

MMRDA Commissioner R A Rajeev said, "Once metro line 4 and 4A have begun operations, it will help to save up to 1,21,000 tonnes of greenhouse gases every year, besides ensuring reduction in air pollution."

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