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KfW provides EUR 500 million for climate-friendly metro system in India

Press Release from 2016-04-01 / Group, KfW Development Bank

  • KfW's largest promotional loan for a decade
  • Construction of two metro lines financed
  • Sustainable and efficient infrastructure funded
  • Pollution reduction for a healthier climate

KfW Development Bank today signed a loan agreement with the Indian government for EUR 500 million on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). This promotional loan, the biggest to have been granted as part of Financial Cooperation with developing and emerging countries in ten years, will finance the construction of a modern and sustainable metro system in Nagpur. Construction of the overground metro will go hand-in-hand with the expansion of feeder systems that are being funded through a separate loan, creating an integrated and climate-friendly local public transport system in the city of 2.3 million inhabitants.

"The constantly growing trend towards motorised private transport in India is being accompanied by a rapid increase in the number of vehicles. The implementation of a new metro system in Nagpur will help counter this development and the simultaneous rise in harmful emissions. KfW is thus playing its part in improving mobility for the population and reducing air pollution in Nagpur," said Dr Norbert Kloppenburg, Member of the Executive Board of KfW Group.

Together with the building of two metro lines covering a combined length of 38 km, the KfW promotional funds will be used for flyovers, stations, rail, traction and telecommunication systems as well as rolling stock. Construction work commenced back in May 2015 and is scheduled to be completed by December 2019. The cost of the project is estimated at roughly EUR 1.24 billion.

Nagpur Metro Rail Corporation Limited (NMRCL), a special purpose vehicle established jointly by the government of the state of Maharasthra and India's Ministry of Urban Development, is the body responsible for on-time completion and subsequent operation.

The metro project in Nagpur is the first to be financed within the German-Indian partnership for clean, socially inclusive and climate friendly mobility for people in Indian cities.

Further information on KfW Development Bank is available at



Portrait Dr. Charis Pöthig 2014

Dr Charis Pöthig


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