>@E. Possenti/EIB
  • India is the largest beneficiary of EIB transport financing outside Europe.
  • The EIB has provided €2.45 billion for transport across India since 2016.
  • The scheme will help cut pollution and carbon emissions, create jobs and improve the safety of women passengers.

European Investment Bank (EIB) Vice-President Kris Peeters and Managing Director of Maharastra Metro Rail Corporation Shri Brijesh Dixit today confirmed a €150 million 20-year loan to support the construction of the city of Pune’s metro. This will improve travel for more than 3 million people living in Pune.

EIB support for transport in India includes EIB backing for metro investment in Agra, Bangalore, Bhopal, Kanpur and Lucknow, with a total of €2.45 billion committed since 2016, making India the largest beneficiary of EIB transport financing outside Europe.

The EIB’s total financing of €500 million backs 31.25 km of metro construction with 30 stations to benefit 159 million passengers per year. It will shorten travel times, create affordable and accessible transport for all, improve quality of life and business conditions, and reduce greenhouse gas emissions in the city. A set of targeted measures will improve the safety of woman travellers.

Once completed in 2023, the Pune metro will create at least 900 new jobs. The project is co-financed together with Agence Française de Développement (AFD).

This project, supporting sustainable transport and climate action, forms part of the EU Global Gateway initiative, backing projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors.

EIB Vice-President Kris Peeters said: “Once completed, the EIB-backed Pune metro rail will facilitate, travel by more than 3 million people living in the city of Pune. Sustainable transport investment supported by a total €500 million loan enables more accessible and affordable access to workplaces, healthcare, education and markets, while protecting the environment and improving the quality of air in the city. This is a good example of how international cooperation and local know-how can make tangible improvement for people and businesses alike, and at the same time contribute to climate action and the protection of the environment. I am very proud to see cooperation between Europe and India growing through projects like this.”

EU Ambassador to India Ugo Astuto said: “Sustainable mobility and green transition is a key pillar of the EU-India strategic partnership. The investment by the EIB in the Indian metro system demonstrates our commitment towards modern, clean and green public transport. The Pune project helps to bring safe, efficient and sustainable public transport to its people, in line with the objectives set for Team Europe by the EU Global Gateway initiative.”

Contribution to the Sustainable Development Goals

The Pune metro project will help achieve a number of Sustainable Development Goals (SDGs), namely SDG 13 (climate action), SDG 11 (sustainable cities) and SDG 5 (gender equality).

Background information

About the EIB:

The EIB brings the experience and expertise of our in-house engineers and economists to help develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms — competitive interest rates with loan durations aligned with the projects. Through our partnerships with the European Union and other donors, we can often provide grants to further improve the development impact of the projects we support.

About the EIB in India:

Since the beginning of its operations in India in 1993, the EIB has supported 26 projects in the country and invested close to €5 billion in transport, energy, agriculture, fisheries and forestry projects as well as India’s small and medium enterprises.

About the EIB in Asia:

For 25 years, the EIB has supported economic development in Asia and the Pacific region. The projects we finance make people’s lives easier — from cutting travel times in Bangalore with a new metro line, to providing cheaper, cleaner energy to western Nepal.

In Asia, we have chosen to focus our lending on climate action across all sectors. We also work to include gender equality in our projects, ensuring that women, men, girls and boys can benefit from projects equally and equitably.

About the Global Gateway initiative:

EIB Global is a key partner in the implementation of the EU Global Gateway initiative, by supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, on the back of the EIB’s 60 years of experience. Alongside our partners, fellow EU institutions and EU Member States, we aim to support investment of €100 billion — around one-third of the overall envelope of the initiative — by the end of 2027.