The European Investment Bank (EIB) announced €289.5 million in new financing to expand metro networks in two major Indian cities, with €240 million going to Nagpur’s metro extension and €49.5 million supporting Pune’s system. The funding aims to shift passenger traffic from road-based transport to sustainable metro systems, cutting carbon emissions and urban air pollution while reducing traffic accidents and noise.
EIB Vice-President Nicola Beer said the projects will deliver “cleaner air, safer travel and faster connections for millions of people” while supporting India’s green transition and climate goals. The financing comes through EIB Global, the bank’s development branch, as part of the EU Global Gateway strategy that prioritizes sustainable transport. India remains EIB’s largest transport partner outside Europe with over €3.6 billion committed since 2016.
Indian cities face massive urban mobility challenges as rapid economic growth drives population increases and vehicle ownership. Traffic congestion, air pollution, and inadequate public transport create daily hardships for millions of commuters while contributing to climate change. Metro systems offer a solution by providing reliable, high-capacity transport that can move large numbers of people efficiently. The shift from private vehicles to mass transit has proven effective in reducing emissions and improving air quality in cities worldwide. For India’s growing urban centers, modern metro networks represent both immediate relief from traffic problems and long-term climate benefits.
In Nagpur, the full commissioning of new metro extensions is projected to cut CO2 emissions from the city’s transport sector by 22%. Daily metro ridership is expected to reach about 190,000 passengers by 2041, representing a 75% increase from current levels. The metro network will more than double in length, significantly expanding its catchment area and improving connectivity for residents. This growth will help residents access employment, education, and healthcare services through shorter and more cost-effective commutes. The Nagpur project shows how targeted infrastructure investment can transform urban mobility patterns.
The Pune funding builds on EIB’s previous €600 million investment covering construction of two metro lines totaling 31.25 km, 30 stations, and 102 modern metro cars. The Pune metro has successfully transported 100 million passengers since March 2022, providing a reliable alternative to private vehicles while improving safety and accessibility, particularly for women and young commuters. The additional financing will help complete the network and maximize its impact on reducing congestion and pollution. Pune’s success demonstrates the potential for metro systems to transform urban transport in India’s rapidly growing cities.
These metro investments contribute to broader efforts to build sustainable transport infrastructure that drives economic growth while addressing climate challenges. By supporting India’s transition to cleaner urban transport, European financing creates direct benefits for daily commuters while advancing global climate goals. The projects exemplify how international development finance can address multiple challenges simultaneously – improving quality of life, reducing emissions, and supporting economic development in one of the world’s fastest-growing economies.
