NAGPUR METRO RAIL PROJECT - PHASE II

The project concerns the second phase of Nagpur Metro Rail project that will connect the satellite towns of Nagpur city in the state of Maharashtra in India. It will serve as an extension to the ongoing first phase, with four extensions (North, South, East and West) totalling 44km and 32 stations.

The project will contribute to two main objectives: (i) climate change mitigation, by promoting modal shift from road to rail and thereby a reduction of GHG emissions; and (ii) the development of social and economic infrastructure by making a key contribution to urban development, thereby improving the business environment for private sector development and facilitating access to amenities and jobs. The project is in line with the EU Country Strategy Paper for India which highlights the infrastructure gap and need to address rising greenhouse gas emissions. It supports two main objectives of EIB External Mandate: (i) climate change mitigation, by promoting modal shift from road to rail while reducing greenhouse gas emissions, and (ii) social and economic infrastructure development, by contributing to urban development.

The project represents the second Phase of the staged construction of a metro network in Nagpur. It concerns four extensions, at both ends of the two interconnected urban metro rail lines of Phase I, totalling 44km with 32 stations. Phase-II will significantly upgrade public transport supply for the whole metropolitan area by providing connectivity to major suburbs and satellite municipalities, with fast-growing residential, commercial and industrial activities. Upon completion, the total length of Nagpur Metro network will be 84 km with 70 stations.

By supporting the shift of traffic to a more sustainable transport mode, the project will reduce negative externalities of road traffic. By providing safer, faster and more affordable transport also to more vulnerable groups (e.g. people with reduced mobility; women), further benefits are unlocked, for example more egalitarian access to jobs and study opportunities.

The project is aligned to EU's Global Gateway strategy, and complements the Team Europe approach (KfW and AFD co-financed Phase I). It contributes to a wide range of SDGs, notably climate change mitigation (SDG 13) and urban infrastructure improvement (9 & 11).

The project benefits from EIB's advantageous long-term funding, as well as the raising of social and environmental standards and technical advice.

In India, metro projects do not fall within the scope of the relevant Environmental Impact Assessment (EIA) legislation unless the built up area is beyond a defined threshold, in which case the project is subject to screening by the State level Competent Authority. The status of screening, if any, is to be determined during appraisal. The project has in any case been subject to an environmental and social impact assessment. The further steps in assessing and managing environmental risks are to be reviewed during appraisal. Compliance with relevant EIB Social Standards is to be reviewed.

The promoter has to ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement