Ahmedabad: Metro Link Express for Gandhinagar and Ahmedabad (MEGA), a Special Purpose Vehicle (SPV) floated by the Gujarat government to execute metro rail project here, has achieved financial closure for the first phase of the project, a top official said.
“A consortium of leading public sector banks led by Punjab National Bank has sanctioned Rs.4,700 crore, out of which Rs.3,100 crore has been allocated for Phase IA, Line 2,” Executive Chairman of MEGA Sanjay Gupta said.
“We have achieved an important milestone, of financial closure, for providing one of the most modern mass transit systems in the world to the people of Ahmedabad and Gandhinagar. We will now focus on the speedy implementation of the project so that people can avail of world class services from August 2017,” he said in a press statement issued today.
Giving further details on the financial aspect of phase I, he said, “Banks have decided to form a consortium and selected Punjab National Bank as the lead bank. Equity component for Phase IA, expected to be around Rs.4,292 crore, would be infused primarily by the state and central governments.”
The total cost of the project is estimated to be Rs 21,000 crore, while the first phase is expected to cost around Rs.10,000 crore.
Leading banks which will be associated with the project beside Punjab National Bank, include Punjab and Sind Bank, Union Bank, Vijaya Bank, Corporation bank, Allahabad Bank, Oriental Bank of Commerce, UCO Bank, United Bank and Syndicate Bank.
MEGA is a state-formed SPV with authorised capital of Rs.200 crore and initial paid-up capital of Rs.10 Crore. The company recently bagged ISO 9001-2008 certification for planning, design and construction of metro rail project.