In a momentous collaboration, the Government of India and the Asian Development Bank (ADB) have officially signed an agreement for a 37 billion Japanese Yen ($250 million) loan to further advance the construction of the pivotal 82-kilometre Delhi-Meerut Regional Rapid Transit System (RRTS) corridor.
The esteemed signatories to this historic loan agreement were Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, representing the Government of India, and Hoe Yun Jeong, Deputy Country Director and Officer-in-Charge of the India Resident Mission, representing the Asian Development Bank.
This agreement follows ADB’s prior approval of a substantial $1,049 million Multi-tranche Financing Facility (MFF) in 2020, earmarked to support the RRTS project. The RRTS, a significant component of the NCR Regional Plan 2021, is the inaugural rail corridor among three prioritized to connect Delhi with neighbouring cities. The financing, which includes the $500 million first tranche from ADB and an additional $500 million co-financed by AIIB, underscores the commitment to modernizing India’s transportation infrastructure.
Expressing her enthusiasm for the investment project, Juhi Mukherjee highlighted the transformative impact on urban mobility. She noted, ‘The RRTS will not only enhance urban mobility but also bring about positive economic effects that will particularly benefit women and the differently-abled.’
Jeong from ADB emphasized the environmental significance of the project, stating, ‘ADB financing is facilitating the construction of a corridor that will enable low carbon and efficient railway travel, contributing significantly to the reduction of millions of tons of CO2 emissions and playing a crucial role in climate change mitigation.’
The 82-km corridor, traversing densely populated sections of the national capital region, is poised to deliver swift, secure, and high-capacity commuter transit services. Anticipated benefits include a notable reduction in travel time from 3-4 hours to approximately 1 hour, thus expanding economic and employment opportunities in the region.
This collaborative effort reflects the commitment of both the Government of India and the Asian Development Bank to advancing sustainable and efficient transportation solutions for the nation’s future.
