EIB Invests €289.5 Million to Expand Green Metro Networks in Nagpur and Pune

The European Investment Bank (EIB), through its international development arm EIB Global, has announced a major new financing package worth €289.5 million to advance sustainable urban transport in India. The funding includes a €240 million loan to expand the Nagpur Metro and an additional €49.5 million top-up loan for the Pune Metro, reinforcing Europe's partnership with India in promoting climate-friendly and inclusive infrastructure.

This latest investment builds upon a strong track record of EIB support for India's public transport transformation, aligning with both the country's National Urban Transport Policy and the EU Global Gateway strategy, which prioritises green, resilient, and inclusive development worldwide.

"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," said EIB Vice-President Nicola Beer. "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 €3.6 billion committed since 2016, India remains our largest transport partner outside Europe under the EU Global Gateway strategy."

Cleaner, Safer and Smarter Urban Transport

India's cities are expanding rapidly, and so are their challenges — congestion, pollution, and road safety risks. The EIB's metro investments address these pressing issues by shifting passenger traffic from road-based vehicles to low-carbon metro systems, reducing dependence on fossil fuels, and cutting greenhouse gas emissions.

Both projects aim to make urban mobility faster, more reliable, and affordable for residents. They are also expected to stimulate economic growth, improve air quality, and create thousands of local jobs during construction and operation phases.

Nagpur Metro: Connecting Communities and Cutting Emissions

The Nagpur Metro expansion project represents a major step forward in sustainable transport for central India. Supported by a €240 million EIB loan, the project will extend the city's metro network to connect additional residential and commercial districts, reducing travel times and congestion.

Upon full commissioning, the extended network is expected to deliver a 22% reduction in CO₂ emissions from the city's transport sector. By 2041, daily ridership is projected to reach 190,000 passengers, a 75% increase over current usage levels.

The expanded metro will more than double in length, significantly broadening its reach and accessibility. It will offer safer, faster, and more reliable commutes while improving access to schools, workplaces, and healthcare facilities. The project is also expected to stimulate transit-oriented development, attracting new housing and businesses around metro stations and encouraging sustainable urban planning.

Pune Metro: Expanding a Proven Success

The Pune Metro, which began operations in March 2022, has already proven to be a resounding success. With over 100 million passengers transported to date, it has become a model for modern, efficient, and environmentally responsible public transport in India.

The EIB's €49.5 million top-up loan supplements its earlier €600 million investment, supporting ongoing construction and upgrades to ensure the system's long-term sustainability and reliability. The Pune Metro includes two lines totaling 31.25 kilometers, 30 stations, and 102 modern metro cars, offering a fast and affordable alternative to private vehicles.

The system's popularity reflects a growing cultural shift in Indian cities toward public transport adoption. The Pune Metro has significantly reduced traffic congestion and pollution, while improving safety, comfort, and accessibility — particularly for women, students, and low-income commuters.

A Strategic Contribution to the EU Global Gateway

The EIB's engagement in India is part of the broader EU Global Gateway strategy, which seeks to mobilize sustainable investment in critical infrastructure sectors such as transport, energy, and digital connectivity. Through this strategy, the EU aims to promote climate action, innovation, and equitable growth by partnering with key emerging economies like India.

These metro projects exemplify how European financing contributes to India's climate goals, including its commitment to net-zero emissions by 2070. They also align with the United Nations Sustainable Development Goals (SDGs) — particularly SDG 9 (Industry, Innovation, and Infrastructure), SDG 11 (Sustainable Cities and Communities), and SDG 13 (Climate Action).

Longstanding EIB-India Partnership

India remains the largest recipient of EIB financing outside the European Union, with cumulative commitments exceeding €3.6 billion since 2016. The Bank's investments have supported several landmark metro projects in Bangalore, Bhopal, Kanpur, Lucknow, Agra, and Mumbai, contributing to India's urban transformation and climate resilience.

The EIB's collaboration with Indian authorities and local partners extends beyond funding. Through EIB Global, it also provides technical assistance, feasibility studies, and environmental and social safeguards, ensuring that projects are implemented efficiently and inclusively.

This long-term partnership reflects the EU's broader ambition to deepen strategic ties with India under the EU-India Connectivity Partnership signed in 2020, fostering cooperation in clean energy, transport, digital innovation, and climate resilience.

Promoting Equity and Green Growth

Both the Nagpur and Pune projects prioritize inclusivity and environmental sustainability. Special design features — including accessible platforms, gender-sensitive infrastructure, and renewable energy integration — ensure that metro services benefit all social groups.

Furthermore, the expansion of metro systems will reduce vehicular emissions and noise pollution, encourage non-motorized mobility, and contribute to healthier urban environments. The resulting benefits extend beyond transportation: better connectivity supports education, employment, and healthcare access, directly enhancing quality of life for millions of citizens.

Looking Ahead: Scaling Sustainable Urban Transport

The EIB's continued investment in India's metro systems underscores its commitment to scaling sustainable urban transport solutions globally. With urban populations projected to grow rapidly in the coming decades, efficient public transport will be critical to ensuring livable, low-carbon cities.

By financing transformative projects such as the Nagpur and Pune metros, EIB Global is not only supporting India's infrastructure needs but also setting a global example for how international partnerships can drive sustainable development, improve daily lives, and protect the planet.