Release date: 17 October 2025
Promoter – Financial Intermediary
MAHARASHTRA METRO RAIL CORPORATION LTDLocation
Description
The project concerns the extensions of Metro Corridor 1 (PCMC to Swargate), of Pune Metro Rail Project (2016-0327) towards the North (PCMC-Nigdi) and the South (Swargate - Katraj). The extensions will be 10.5km long with 9 stations.
Additionality and Impact
The project involves the extension of Corridor 1 of the Pune Metro Rail Project (2016-0327) towards the North and South. The North extension is elevated (4.5 km, 4 stations from PCMC to Nigdi), while the South extension is underground (5.9 km, 5 stations from Swargate to Katraj). The extensions will significantly expand the network beyond the central business district, improving connectivity to rapidly growing urban zones.
The project supports a modal shift from private vehicles to public transport, contributing to reduced traffic-related externalities (noise and air pollution, greenhouse gas emissions, road accidents and congestion) and improved accessibility to employment, education, and essential services - particularly for women and vulnerable groups - thus contributing to a more liveable, inclusive, and sustainable metropolitan area.
By providing climate resilient urban infrastructure in India, the project constitutes a flagship Global Gateway project, furthers EU's strategic and commercial interests, and is expected to advance several Sustainable Development Goals.
The project benefits from EIB's advantageous long-term funding, as well as the raising of social and environmental standards and technical advice.
Objectives
The project will contribute to two main objectives of the EIB External Mandate: (i) climate change mitigation, by promoting modal shift from road to rail and thereby a reduction of greenhouse gas emissions; (ii) enhancement of social and economic infrastructure, by making a key contribution to urban development, thereby improving the business environment to support the private sector and facilitate 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.
Sector(s)
- Transport - Transportation and storage
Proposed EIB finance (Approximate amount)
EUR 235 million
Total cost (Approximate amount)
EUR 475 million
Environmental aspects
Metro rail systems in India are exempt from the Environmental Impact Assessment (EIA) procedure and prior environmental clearance under the EIA Notification Act, 2006. However, all necessary permits for tree felling, waste management, water use, and other construction-related activities will be obtained as required. Despite the absence of a legal obligation under the Indian law, the project has been subject to a full Environmental and Social Impact Assessment (ESIA) in line with the EIB's Environmental and Social Policy, and its compliance with applicable EIB's Environmental and Social Standards will be further reviewed during appraisal.
Procurement
The promoter has to ensure that the project implementation will be done in accordance with the EIB's Guide to Procurement.
Status
Signed - 16/12/2025