EIB provides EUR 300 million loan for Bengaluru’s new suburban railway network

Investment to enhance urban mobility & connectivity

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October 26, 2024

/ By / Paris

EIB provides EUR 300 million loan for Bengaluru’s new suburban railway network

EIB has officially announced a EUR 300 million loan to support the development of a new suburban railway network

European Investment Bank (EIB), a leading European financial services institution, has announced a EUR 300 million loan to develop a new suburban railway network in Bengaluru, featuring four dedicated rail corridors to enhance urban mobility.

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In a significant boost to Bengaluru’s transportation infrastructure, the European Investment Bank (EIB) has officially announced a EUR 300 million loan to support the development of a new suburban railway network. This ambitious project aims to establish four dedicated rail corridors, which is expected to enhance connectivity and alleviate traffic congestion in India’s tech hub. As the city grapples with rapid urbanisation and an increasing population, this investment represents a pivotal step towards modernising its public transport system and promoting sustainable urban mobility.

According to a press statement, EIB Vice-President Nicola Beer and Karnataka Rail Infrastructure Development Company (KRIDE) Director of Finance Awadhesh Mehta announced loan for a new suburban railway network in Bengaluru, which will stretch over 149 km and will feature 58 stations and two depots.

It adds that EIB has also previously supported Bengaluru with a EUR 500 million loan for the 23 km Bengaluru Metro R6 line and to acquire 96 metro cars.

EIB says that its support for transport in India includes financing metro projects in Agra, Bengaluru, Bhopal, Kanpur, Lucknow and Pune, totalling EUR 3.25 billion committed since 2016, making India the largest beneficiary of EIB transport financing outside Europe.

It adds that the Bengaluru suburban railway will enhance synergy with existing rail operations and the metro system by creating multimodal transport hubs. This project aims to shift from road to rail, reducing congestion, air and noise pollution, and greenhouse gas emissions, while providing an affordable mobility solution to improve access to jobs and education.

It further adds that once operational, the Bengaluru transport system will achieve a 43 pc reduction in CO2 emissions. Daily ridership is projected to reach 400,000 trips in 2029 and increase to about 1.4 million trips by 2040, aligning with population growth.

EIB says that to address India’s urgent urban mobility challenges, it has established the Urban Mobility Competence Hub in partnership with Deutsche Bahn Engineering & Consulting. This initiative aims to support urban transformation by applying Europe’s best practices and technical expertise to develop effective mobility solutions for Indian cities. It combines EIB’s financial and technical resources with Deutsche Bahn’s rail sector expertise, facilitating collaboration among international and local experts in environmental safeguards and procurement.

Nicola Beer

Nicola Beer

“The European Investment Bank is honoured to finance the Bengaluru suburban railway network with a EUR 300 million loan. This funding complements the EUR 500 million we allocated for the construction of the Bengaluru Metro R6 line, addressing Bengaluru’s mobility challenges by developing a clean, modern and efficient public transport system. The two projects we are financing in Bengaluru aim to create India’s most integrated rail network, providing seamless connectivity with all other modes of public transport in the city. The Bengaluru suburban railway network includes design features to enhance access, safety and security for women and supports women’s participation in construction works. The project is therefore expected to have a significant positive impact for women in Bengaluru, especially in terms of affordable, safe and secure access to economic and social functions,” says Nicola Beer, EIB Vice-President.

Hervé Delphin

Hervé Delphin

“Over the past two decades, the EIB has invested nearly EUR 5 billion in sustainable projects across India, with an impressive 90 pc focused on climate action. A significant portion of this support has been dedicated to sustainable transport, including substantial investments in metro projects across six cities, Agra, Bengaluru, Bhopal, Kanpur, Lucknow and Pune. Today’s announcement, part of the EU Global Gateway Initiative, will enable the people of Bengaluru, a thriving technology and manufacturing hub, to commute faster and greener. It also marks a major milestone in our collaboration, as we unlock new opportunities for growth, connectivity and positive social, economic and environmental impact, further strengthening the partnership between India and the EU,” says Hervé Delphin, EU Ambassador to India and Bhutan.

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