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The Indian government and the European Investment Bank (EIB) on Friday signed the finance contract for second tranche of 150 million euros for the Pune Metro Rail project, through a virtual signing ceremony.

The signing ceremony was held in the presence of Portugal's Secretary of State for Foreign Affairs and Cooperation, Francisco Andre, and EIB President Werner Hoyer, with Additional Secretary, Economic Affairs, K. Rajaraman, signing the loan on behalf of India, and EIB Vice President Christian Kettel Thomsen, on behalf of the EIB.

The EIB had approved the total loan of 600 million euros to fund the Pune Metro Rail project. The finance contract for first tranche of 200 million euros was signed on July 22, 2019.

The project aims to provide an efficient, safe, economic and pollution-free Mass Rapid Transit System in densely-populated area in the city of Pune served with heterogeneous traffic options.

The financing will help to fund construction and operation of Corridor 1 (North-South) - Pimpri Chinchwad Municipal Corporation (PCMC) to Swargate, and Corridor 2 (West-East) -Vanaz (Kothrud) to Ramvadi, totalling 31.25 km and related purchase of a fleet of metro cars.

Further, the project will serve a large population which consisting of working class in providing urban mobility for their livelihood.

The Maharashtra Metro Rail Corporation Ltd (MAHAMETRO) is the implementing agency for this project.