The European Investment Bank ( EIB ), through its development branch EIB Global, has announced new financing totalling €289.5 million ( US$387.27 million ) to expand sustainable metro networks in India.

The financing package includes a €240 million loan for the Nagpur metro extension and a €49.5 million top-up loan for the Pune metro.

Implementation of the two projects is expected to significantly enhance urban mobility by shifting passenger traffic from road-based transport to more sustainable metro systems, the EIB says.

This modal shift will contribute to a substantial reduction in carbon emissions and urban air pollution, while also decreasing road traffic accidents and noise pollution. The projects will also lead to shorter and more cost-effective commutes, thereby improving access to employment, education, and healthcare services across the cities involved.

Network expansions

In Nagpur, by the year 2041, daily metro ridership is anticipated to reach 190,000 passengers, up 75% from the current level. This growth will be driven by the expansion of the metro network, which will more than double in length and significantly broaden its catchment area, thus enhancing connectivity and accessibility for residents.

In Pune, the additional financing will complement the EIB’s previous €600 million investment, covering the construction of two metro lines totalling 31.25 kilometres, 30 stations, and 102 modern metro cars.

The Pune metro has transported 100 million passengers since March 2022.

The EIB loans contribute to the EU Global Gateway strategy, which prioritizes sustainable transport as a driver of economic growth, climate action, and improved urban living standards.

With more than €3.6 billion committed since 2016, India is the EIB’s largest transport partner outside Europe under the EU Global Gateway strategy.