ADB lends $350 million loan to India

NEW DELHI: The Government of India signed a $350 million loan agreement with the Asian Development Bank (ADB) to improve and expand the connectivity of metro rail system in Chennai and upgrade the existing public transport system.

Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, signed the tranche 1 loan agreement for the Chennai Metro Rail Investment Project whereas Nilaya Mitash, Officer-in-Charge of ADB’s India Resident Mission signed from ADB’s side. The loan is a part of the $780 million multi-tranche financing facility (MFF) approved by the ADB to develop three new metro lines in Chennai.

After signing the loan agreement, Mishra stated that connectivity through the metro system from the city’s central areas to major destinations in the south and west of the city will be beneficial for the commuters and will reduce dependency on motorized vehicles. “Besides expanding the metro network in Chennai, ADB’s support will facilitate better integration between inclusive urban renewal measures and urban mobility improvement through transit-oriented development (TOD),” he said.

The project will support the development of three metro lines-three, four, and five, including the construction of tracks lengthed around 10.1 kilometres (km), 10 km, and 31 km respectively. The metro line three will be the elevated section between Sholinganallur to the State Industries Promotion Corporation of Tamil Nadu-2 which includes nine metro stations and system components. For line four, the project will construct an underground section between Lighthouse and Meenakshi College including nine stations. The 31-kilometre-long line five will be financed for system components, such as electrical, mechanical, power and telecommunication infrastructure between Chennai Mofussil Bus Terminus to Okkiyam Thoraipakkam. The stations will be built with disaster and climate-resilient features and will be responsive to the needs of women, children, the elderly, differently-abled, and transgender people.

An additional $1 million ADB Technical Assistance (TA) grant will help the Chennai Metro Rail Limited to plan and manage multimodal interchanges and facilities along with the rail corridors including better drop-off and pick-up areas for the commuters, bicycle facilities, and sheltered waiting areas.