The European Investment Bank (EIB), through EIB Global, has approved €289.5 million to strengthen sustainable urban transport in India. The financing includes €240 million for the Nagpur metro extension and €49.5 million for the Pune metro. The move strengthens India’s sustainable transport infrastructure, promising cleaner air, reduced congestion, and faster urban mobility while reinforcing Europe’s commitment to India’s climate and growth goals.

Introduction:

In a major push towards sustainable urban mobility, the European Investment Bank (EIB), through its development branch EIB Global, has sanctioned €289.5 million in new financing to support the expansion of metro networks in Nagpur and Pune.

The funding package includes:

This financial commitment builds upon the EIB’s ongoing partnership with India, aligning with the country’s green transition and the European Union’s Global Gateway strategy, which emphasizes sustainable and inclusive growth.

Transforming Urban Mobility:

The latest investment underscores EIB Global’s confidence in India’s urban transport sector, aiming to make commuting faster, safer, and cleaner for millions.

The two metro projects will shift passenger traffic from roads to rail, reducing dependence on fossil fuels and mitigating pollution levels.

According to EIB estimates, these projects will:

By encouraging a modal shift towards public transport, these initiatives align with India’s climate commitments and its broader sustainable development goals.

Nagpur Metro Extension – A Model for Sustainable Growth:

The EIB’s €240 million loan will fund the extension of Nagpur’s metro network, which plays a vital role in the city’s green urban transformation.

Projected Benefits:

This expansion is expected to create a long-term environmental and social impact, providing efficient, affordable, and eco-friendly transport to one of central India’s most dynamic cities.

Pune Metro Expansion – Strengthening Success:

In Pune, the EIB’s €49.5 million top-up loan complements its earlier €600 million investment that funded the construction of two metro lines covering 31.25 km with 30 stations and 102 metro cars.

Since March 2022, the Pune metro has already transported over 100 million passengers, demonstrating strong public adoption. The new financing will help extend the system’s reach, improve last-mile connectivity, and enhance passenger convenience.

Impact Highlights:

With these improvements, Pune continues to emerge as one of India’s leading examples of sustainable city transport planning.

India – EIB’s Largest Transport Partner Outside Europe:

EIB financing in India’s transport sector has now surpassed €3.6 billion, making the country the largest beneficiary of EIB transport support outside Europe. This achievement underscores India’s strategic importance within the EIB’s global development portfolio.

Key Figures:

This ongoing partnership reflects the EU’s long-term commitment to helping India achieve its green transition, while also supporting job creation and economic inclusion.

Driving the Global Gateway Vision:

The projects in Nagpur and Pune form part of the EU’s Global Gateway Investment Agenda, which aims to foster sustainable and reliable infrastructure connections worldwide. EIB Global plays a pivotal role in implementing this agenda, supporting investments across digital, climate, energy, transport, health, and education sectors.

Under the initiative:

Insights:

Nicola Beer, EIB Vice-President, emphasized the human and environmental impact of these metro projects, stating, “By extending Nagpur’s metro and further supporting Pune’s network, we are helping to deliver cleaner air, safer travel, ad faster connections for millions of people. These projects show how European financing can have a direct impact on people’s daily lives while supporting India’s green transition.”

EIB Global – A Catalyst for Sustainable Partnerships:

Established in 2022, EIB Global serves as the EIB Group’s arm for activities beyond Europe. Its mission is to strengthen international partnerships, support sustainable investments, and ensure that European finance contributes directly to global development goals.

With offices around the world, EIB Global brings European expertise closer to local communities, fostering impactful collaboration with development banks, governments, and private enterprises. Its emphasis on climate action, infrastructure, and inclusive growth makes it a cornerstone of Europe’s sustainable outreach.

Conclusion:

EIB Global’s €289.5 million investment in Nagpur and Pune metros underscores the growing partnership between India and the EU for sustainable urban transport. Beyond infrastructure, these projects represent a shared vision of cleaner air, reduced emissions, and inclusive mobility — essential pillars for India’s green future.

Source: EIB – Press Release | Image Credit (representational): Nagpur Metro

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