KfW issues Euro 442.26 million loan for Surat Metro Rail project

The Government of India and the Germany Development Bank-KFW (Kreditanstalt für Wiederaufbau) on 17.12.2021 signed a Euro 442.26 million loan for the Surat Metro Rail project.

• Shri Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance signed for the Government of India the agreements for Surat Metro Rail Project, while Ms Claudia Schmerler, Head of Division, Climate Finance and Urban Mobility signed for KFW.
• The total cost of the project is Euro 1.50 billion, out of which KfW is financing Euro 442.26 million. 
• The project is being co-financed by the French Development Agency, AFD (Agence Française de Développement). 
• The Agreement with AFD for Euro 250 million was signed on 28.01.2021.
• The 40.35 km Surat Metro project aims to strengthen & augment the transport infrastructure of the Surat urban agglomeration. 
• It will relieve traffic congestion and provide integrate town & Land use planning through Transit-Oriented Development. 
• The project also 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. 
• Further, Solar energy shall be harnessed at both Depots of Surat Metro.
• The project is envisaged and planned to have a system and transformational impact in terms of a reliable & safer public transport, reduction in traffic congestion & reduction in long delays on major travel corridors in Surat city and urban area by providing integrated mass public transport system. 
• The project shall have a positive impact on the living standards and environs of the city of Surat.

About Surat Metro Rail Project:

• Surat with a population of around 60 lakhs is the fastest growing city in India. The city has no Mass Rapid Transportation System (MRTS), thus GoI and GoG decided to provide an MRTS facility in Surat. 
• Phase-I of Surat Metro Rail Project, with a total length of 40.35 kms comprises two corridors. 
• Length of Corridor-1 is 21.61 kms and Corridor-2 is 18.74 kms with an estimated completion cost of project Rs.12,020 crore. 

• The Corridor-1 is from Sarthana to Dream City, which comprises 14 elevated stations and 6 underground stations with depot at Dream City and the Corridor-2 is from Bhesan to Saroli, which comprises 18 elevated stations with depot at Bhesan. 
• The Corridor from Dream City Depot to Kadarsha ni Nal of 9.88 Kms (Corridor-1) is being taken up on priority which is having 10 elevated Metro Stations. 
• With the constant monitoring and guidance by the Hon’ble Prime Minister Office and Hon’ble Chief Minister of Gujarat, this project will provide an environmentally friendly Mass Rapid Transit System (MRTS) to the historical city of Ahmedabad, Gandhinagar and Surat. 
• The said Metro Projects are designed in such a way that it will provide environment friendly, comfortable, hassle free connectivity to some major railway stations, bus depots, colleges, schools, offices, residential areas, commercial places, malls and tourist spots of the cities.

Source: PIB-Press Release