The New Development Bank, also known as BRICS Bank, has approved loans worth USD 741 million for two critical infrastructure projects in India.
In a press release, the Shanghai based bank said that its Board of Directors approved a loan of USD 500 million for the Delhi-Ghaziabad-Meerut Regional Rapid Transit System (RRTS) Project and a loan of USD 241 million has been approved for Mumbai Metro Rail II (Line 6) Project. The board meeting was held in a virtual format on September 29, 2020.
Delhi-Ghaziabad-Meerut Regional Rapid Transit System Project
The NDB Board approved a loan of USD 500 million for the Delhi-Ghaziabad-Meerut Regional Rapid Transit System (RRTS) Project. The loan would be used by Union Government for on-lending to the National Capital Region Transport Corporation Limited (NCRTC) for construction of a rapid rail corridor connecting the National Capital Territory of Delhi with the cities of Ghaziabad and Meerut in Uttar Pradesh.
The RRTS will have a total length of 82.15 km (68.03 km elevated and 14.12 km underground) with 25 stations. It will have a design speed of 180 km per hour, maximum operating speed of 160 km per hour and high-frequency operations, which will reduce the journey time from Delhi to Meerut to 60 minutes. The Project aims to an efficient and sustainable regional transport system and reduce congestion in Delhi, by offering people the alternative of settling in surrounding cities and being able to commute to Delhi through a fast, reliable, safe and comfortable public transport system.
Mumbai Metro Rail II (Line 6) Project
The NDB Board also approved a loan of USD 241 million for the Mumbai Metro Rail II (Line 6) Project. The loan will be used by the Union government for on-lending to the Government of Maharashtra for the purpose of implementing a metro rail Line 6 with length of about 14.47 km in the city of Mumbai.
The Mumbai Metro Rail II Project aims to improve Mumbai’s transport and traffic conditions through providing a modern metro system, featuring high-capacity, safe, and comfortable mode of transport.
Line 6 will provide rail-based connectivity between the western and eastern suburbs, and will contribute towards an integrated seamless public transport network in Mumbai. The Project will be implemented by the Mumbai Metropolitan Region Development Authority.
The NDB is also supporting the implementation of metro lines in Mumbai with length totaling to about 58 km (Line 2 and Line 7) by financing of the Mumbai Metro Rail Project approved by the NDB BoD in November, 2018.
The NDB was established by Brazil, Russia, India, China and South Africa. It primary aim is to mobilise the resources for infrastructure and sustainable development projects in BRICS countries (Brazil, Russia, India, China and South Africa) and other emerging economies and developing countries. It complements the efforts made by multilateral and regional financial institutions for global growth and development. The NDB was formerly referred to as the BRICS Development Bank. The NDB is headquartered in Shanghai, China. The first regional office of the NDB was established in Johannesburg, South Africa. The NDB was founded on July 15, 2014. First President of the bank was K. V. Kamath.