The French government agency Agence Francaise de Developpement (AFD) will provide Nagpur Metro a EUR 130 million as the negotiations are in the final stages.
According to a source in Nagpur Metro Rail Corporation Ltd, “the terms and conditions of the loan will be similar to that of German agency KfW. It will be a long term loan with a moratorium of five years. The interest rate is expected to be between 1.6% and 1.7%. If the Indian rupee depreciates against Euro then the rate of interest will effectively increase for us.”
This year, KfW Development Bank signed a EUR 500 million loan agreement with the Indian government for the construction of metro system in Nagpur.
Two consortia led by Deutschebahn (DB) and Systra have been shortlisted and both have given their detailed presentations. Nagpur Metro and its consultant Delhi Metro Rail Corporation (DMRC) need to take the final call.
The total cost of the project is estimated at EUR 1.24 billion and is scheduled to be completed by December 2019.
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