EIB announces largest ever loan in India and new office at EU-India summit
30 March 2016
At the 13th European Union – India summit held in Brussels today, Werner Hoyer, the President of the European Investment Bank, announced that the world’s largest multilateral public bank would strengthen engagement to support long-term investment in India. Speaking alongside Indian Prime Minister Narendra Modi, President Werner Hoyer confirmed the European Investment Bank’s firm commitment to supporting long-term investment crucial for environmentally sustainable social and economic development in India and announced the opening of a Regional Representation for South Asia in New Delhi by the end of the year.
“The European Investment Bank has supported long-term investment across India for more than 20 years that has helped to harness renewable energy, strengthened industry and reduced carbon emissions. As the world’s largest multilateral public bank and a global leader in financing climate action, the European Investment Bank recognises that the time is right to increase our engagement in India. The opening of a regional office of the EU Bank in the sub-continent will ensure closer ties with public and private partners across the country, where our financial strength and technical expertise can benefit crucial long-term investment in India” said European Investment Bank President Werner Hoyer.
The summit also provided an opportunity for the European Investment Bank’s largest ever financing in India, a EUR 450 million (Rs.33 billion) investment for the first metro line in Lucknow, capital of Uttar Pradesh. Finance contracts for the first tranche of the European Investment Bank long-term loan for the Lucknow Metro were signed by Jonathan Taylor, European Investment Bank Vice President responsible for Asia and H.E. Manjeev Singh Puri, Ambassador of India to Belgium, Luxembourg and European Union.
“Today’s agreement represents the largest commitment of the European Investment Bank in India and the most significant support for sustainable transport investment outside Europe. The first metro line in Lucknow is a flagship project not only for Uttar Pradesh and India, but also for the EU Bank’s strengthened global commitment to support transformational investment.” added President Werner Hoyer.
The EUR 450 million long-term loan agreed today will be used to finance the first metro line in Lucknow, including both construction of the 23km long new metro line and a fleet of metro trains. The line is the first part of an expected broader metro network planned for the capital of Uttar Pradesh, the most populous state in India. Once operational the new metro is expected to increase use of public transport from 10% to an estimated 27% in the city of 3 million people.
“Investment in sustainable public transport is essential not only to improve urban mobility, but also to reduce carbon emissions, address health issues and cut time lost in traffic. The European Investment Bank is pleased to support the new Lucknow Metro project and build on our unique track record of supporting long-term investment in sustainable transport around the world. This new support also represents the European Investment Bank’s first sovereign loan to the Republic of India and marks a new era in our engagement in the country” said Jonathan Taylor, European Investment Bank Vice President responsible for lending operation in Asia and climate action worldwide.
The formal agreement of the record European Investment Bank loan was signed in the presence of Donald Tusk President of the European Council, Jean-Claude Juncker, President of the European Commission and the European Union High Representative of the Union for Foreign Affairs and Security Policy and Vice-President of the Commission, Frederica Mogherini.
President Werner Hoyer met Prime Minister Modi and discussed the European Investment Bank’s support to the country in areas of sustainable development and climate action, where the EU Bank has increased its commitment to 35% outside the EU. The European Investment Bank’s new Regional Representation for South Asia is expected to be opened later this year and located in New Delhi to enhance cooperation with the government, financial partners and project promoters.
The European Investment Bank has provided more than EUR 1.34 billion for long-term investment in India since the first operation in 1993.
Finance Minister Jaitley inaugurates the new EIB Regional Representation for South Asia in New Delhi, following agreements for EUR 450m of new support for sustainable transport and renewable energy projects.
The EIB today confirmed new support for solar power generation in India in partnership with the State Bank of India. The EUR 200 million (INR1,400 Crores) long-term loan will support total investment of EUR 650 million in five different large-scale photo-voltaic solar power projects and contribute to India’s National Solar mission and reduce dependence on fossil fuel power generation. Four schemes across the country, with a generation capacity of 530 MWac, have already been identified.