The European Investment Bank (EIB), through its development branch EIB Global, has announced new financing totalling EUR 289.5 million to expand sustainable metro networks in India. The financing package includes an EUR 240 million loan for the Nagpur metro extension and an EUR 49.5 million top-up loan for the Pune metro.

Metro Expansion Projects and Environmental Impact

The implementation of the two projects is expected to significantly enhance urban mobility by shifting passenger traffic from road-based transport to more sustainable metro systems. This modal shift will contribute to a substantial reduction in carbon emissions and urban air pollution, while also lowering road traffic accidents and noise pollution. The projects will lead to shorter and more cost-effective commutes, thereby improving access to employment, education, and healthcare services across the cities involved.

In Nagpur, the full commissioning of the new metro extensions is projected to result in a 22% reduction in CO2 emissions from the city's transport sector. By the year 2041, daily metro ridership is anticipated to reach approximately 190,000 passengers, representing a 75% increase compared to current figures. This growth will be driven by the expansion of the metro network, which will more than double in length and significantly broaden its catchment area, thus enhancing connectivity and accessibility for residents.

Pune Metro Development and Performance

In Pune, the additional financing will complement the EIB's previous EUR 600 million investment, covering the construction of two metro lines totalling 31.25 km, 30 stations, and 102 modern metro cars. The Pune metro has successfully transported 100 million passengers since March 2022 and provides a reliable, eco-friendly alternative to private vehicles, reducing congestion and pollution while improving safety and accessibility, particularly for women and young commuters.

EIB's Strategic Commitment to India

EIB financing in India's transport sector now exceeds EUR 3.6 billion, making the country the largest beneficiary of EIB transport support outside Europe. EIB Vice-President Nicola Beer stated: “By extending Nagpur's metro and further supporting Pune's network, we are helping to deliver cleaner air, safer travel, and 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 and climate goals.

With more than EUR 3.6 billion committed since 2016, India remains our largest transport partner outside Europe under the EU Global Gateway strategy.” Since the beginning of its operations in India in 1993, the EIB has supported more than 100 projects in the country, investing EUR 5.6 billion in transport and energy projects as well as India's small and medium enterprises and mid-caps.

The EIB is the largest multilateral public bank in the world. In 2024, it financed around EUR 8.4 billion in investments outside the European Union via EIB Global, the arm of the EIB created in 2022 for activities beyond Europe.

Global Gateway Strategy Integration

These operations contribute to the EU Global Gateway strategy, which prioritizes sustainable transport as a driver of economic growth, climate action, and improved urban living standards. EIB Global is a key partner in implementing the European Union's Global Gateway Investment Agenda, supporting sound projects that enhance global and regional connectivity in the digital, climate, transport, health, energy, and education sectors.

EIB Global aims to support EUR 100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies, and institutions through its offices across the world.

The European Investment Bank is the long-term lending institution of the European Union, owned by its Member States. It finances investments that pursue EU policy objectives. EIB Global is the EIB Group's specialized arm devoted to increasing the impact of international partnerships and development finance, and a key partner of the Global Gateway.

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