The Asian Development Bank (ADB) has agreed to provide a $1bn loan for the development of Delhi–Meerut Regional Rapid Transit System (RRTS) in India.
The funding will be used to support construction works of the rapid transit system that seeks to improve regional connectivity in the national capital region (NCR).
The loan will finance the construction of railway tracks, station buildings, traction, power supply and maintenance facilities.
ADB principal transport specialist Sharad Saxena said: “Efficient and integrated transport solutions are critical for managing the rapid urbanisation and ensuring balanced urban development of the region.
“This project will also provide safe, reliable and seamless travel between Delhi and other NCR cities, and pave the way for a paradigm shift in mobility across the NCR.”
The 82km-long RRTS project involves the construction of a semi-high speed rail corridor between Delhi and Meerut via Ghaziabad. It is also one of the three rapid-rail corridors planned under the NCR Regional Plan 2021.
The $3.94bn project will receive the financing in four tranches between this month and May 2025.
The central government has already committed $1.89bn while other co-financiers are expected to provide $1bn.
ADB’s Japan Fund for Poverty Reduction also allocated a $3m grant to ensure the provision of visual, hearing and mobility aids at RRTS stations.
In May, Bombardier received a $340m contract to supply regional commuter and intracity transit trains for Delhi–Meerut RRTS Phase I.
Earlier, L&T Construction received contracts to support the construction of RRTS infrastructure.