Brussels, April 1: European Investment bank will provide a loan assistance of 450 million euros (Rs. 3,502 crore) for Lucknow Metro in its phase-1 A project. An agreement in this regard was signed at 13th EU-India summit in Brussels on Wednesday in the presence of Prime Minister Narendra Modi during his visit to the Belgium capital.
The loan amount will be released in two tranches of 200 million Euros and 250 million Euros. The loan agreement was signed by the Indian Ambassador to Belgium Manjiv Singh Puri and Vice-President of European Investment Bank Jonathan Taylor.
The loan represented the largest project financing by European Union's official bank, also the world's largest international public bank, in India since its engagement in the country began more than 20 years ago and the most significant investment in sustainable public transport outside Europe European Investment Bank (EIB) said.
The 22.878 km long Lucknow Metro Phase-1A project was approved by the Government in December, 2015 at a cost of Rs.6,928 cr on 50 : 50 equity funding by the central and state governments. The line is the first part of a broader metro network planned for Lucknow, the capital city of Uttar Pradesh. When it becomes operational, the new metro is expected to increase the use of public transport from 10 per cent to an estimated 27 per cent in the city of three million people, the bank said in a statement.
“Today’s agreement represents the largest commitment of the European Investment Bank in India and the most significant support for sustainable transport investment outside Europe. The first metro line in Lucknow is a flagship project not only for Uttar Pradesh and India, but also for the EU Bank’s strengthened global commitment to support transformational investment.” EIB President Werner Hoyer said.
Investment in sustainable public transport is essential not only to improve urban mobility, but also to reduce carbon emissions, address health issues and cut time lost in traffic. The European Investment Bank is pleased to support the new Lucknow Metro project and build on our unique track record of supporting long-term investment in sustainable transport around the world.
This new support also represents the European Investment Bank’s first sovereign loan to the Republic of India and marks a new era in our engagement in the country” said Jonathan Taylor, EIB Vice President.