Agreement Boosts Funding for Rapid Transit System
The Government of India and the Asian Development Bank (ADB) joined forces in a significant move by signing a loan agreement worth 37 billion Japanese Yen ($250 million) on December 15, 2023. This financial infusion will sustain the ongoing construction of the 82-kilometre Delhi Meerut Regional Rapid Transit System (RRTS) corridor.
Key Signatories and Loan Background
The signatories to this pivotal agreement were Ms. Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, representing the Government of India, and Mr. Hoe Yun Jeong, Deputy Country Director, and Officer-in-Charge of the India Resident Mission, representing ADB. This agreement follows ADB’s earlier approval of a $1,049 million Multi-tranche Financing Facility (MFF) in 2020 to support the RRTS project. The corridor is the first among three priority rail corridors outlined in the NCR Regional Plan 2021, aiming to connect Delhi with neighboring cities.
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Aiming for Improved Urban Mobility and Reduced Carbon Emissions
Ms. Mukherjee emphasized that this investment project is poised to enhance urban mobility significantly. She highlighted that the project’s positive economic impacts will extend to benefit women and individuals with different abilities.
Mr. Jeong from ADB acknowledged the crucial role of their financing in constructing an efficient and low-carbon railway system. He emphasized that the RRTS will not only facilitate convenient and swift transportation but will also contribute significantly to climate change mitigation by saving millions of tons of CO2 emissions.
Transformative Impacts on Regional Connectivity
The 82-km corridor, cutting through densely populated areas of the national capital region, is anticipated to revolutionize commuter transit services. The Delhi Meerut RRTS aims to provide fast, safe, and high-capacity transit, reducing travel time from the current 3-4 hours to approximately 1 hour. This transformative infrastructure is expected to expand economic and employment opportunities in the region, fostering a more connected and sustainable urban environment.
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