The German KfW has approved two loans adding up to 545 million euros for Mumbai Metro‘s Line 4 and 4A.
Mumbai Metro Line 4 runs from Wadala to Kasarvadavli in Thane while Line 4A is an extension to Gaimukh along Ghodbunder Road.
Out of this, 255 million euros will be utilized for purchase of rolling stock and implementation of an integrated ticketing system. Another 90 million euros will be utilized for multimodal integration.
KfW is Germany’s state-owned development institution that has also lent 500 million euros to Nagpur Metro in 2015.
In Mumbai, KfW approved funds will also fund footpaths and cycle routes around stations. The aim is to improve integration within the transport system. The 34 kilometres long Metro Line 4 will bring north-south connectivity, linking Mumbai to Thane.
The loan has been approved at the rate of interest of 0.29% and 0.07% on EUR 345 million. On the remaining EUR 200 million, the rate of interest is 0.82%.
“Once metro line 4 and 4A have begun operations, it will help to save up to 121,000 tones of greenhouse gases every year, besides ensuring reduction in air pollution,” said R A Rajeev, MMRDA Commissioner.