The government of India and the Germany Development Bank -- KFW (Kreditanstalt für Wiederaufbau) -- today signed a 442.26 million euro loan pact for Surat Metro Rail project. The total cost of the project is estimated to be Euro 1.50 billion ( ₹12,020 crore), of which KfW is financing Euro 442.26 million.
Prime Minister Narendra Modi had launched the Ahmedabad Metro Rail Project Phase-II and the Surat Metro Rail Project in January this year.
The project is aimed at reducing traffic congestion and long delays on major travel corridors in Surat city and urban area.
The project is being co-financed by French Development Agency, AFD (Agence Française de Développemet), for which the agreement for Euro 250 million was signed on January 28, 2021.
Rajat Kumar Mishra, additional secretary, department of economic affairs in the finance ministry signed for the India side agreements for the Metro rail project, while Claudia Schmerler, head of division, climate finance and urban mobility signed for KFW.
Surat Metro project
The 40.35 km Surat Metro project aims to strengthen the transport infrastructure of urban part of Surat. It comprises two corridors. While corridor-1 is 21.61 km long and is from Sarthana to Dream City. Corridor-2 is 18.74 km long and is from Bhesan to Saroli.
The project is expected to relieve traffic congestion and provide integrate town and land use planning through transit-oriented development.
“The project aims at an integrated multi modal transport system in the influence zone of metro corridor to provide first and last mile connectivity and improved access to the metro system," the ministry said, adding that solar energy will be harnessed at both depots of Surat Metro.
Also read: PM Modi launches Ahmedabad and Surat Metro Rail projects: Everything you need to know
