Lucknow Metro Rail Corporation positive on talks with French financing agency

Lucknow लखनऊ (LKO): Officials from Lucknow Metro Rail Corporation on Friday had a meeting with French financial institution Agence Francaise de Developpement (AFD) regarding funding of the metro project.

The meeting was organized by the Union Finance Ministry’s Department of Economic Affairs for various Indian projects which the agency is considering for funding.

The French agency has shown interest to extend a loan to the Lucknow metro rail project. LMRC Managing Director Rajeev Agarwal said, “The discussions with the French agency have been positive so far”.

The final decision would come after a series of negotiations, deliberations and loan formalities.

According to LMRC, the conference was for projects already funded by the international bank and those in the pipeline. The fact that DEA invited LMRC for discussions with the bank is a signal that the department is positive about its association with the bank, said an official. A team of experts from AFD has visited the proposed site for the corridor construction.

The cost of the project would be shared between the state government, the Centre and the external agency in the ratio of 20:20:60. LMRC would need around 450 million euros from the agency.

The corporation said it had the required budget to start the project. The state government is expected to allocate some funds towards the metro project in June.

LMRC also said since the loan amount was heavy, DEA might consider more than one international bank for financing. Agarwal said DEA would organize a meeting with the European Investment Bank and a team from there might visit Lucknow soon.