EIB Global to provide 300 million euros loan for Bengaluru suburban railway

The European Investment Bank (EIB Global) will provide a 300 million euro (about Rs 2,800 crore) loan for Bengaluru suburban railway, a top official said on Friday.

"This loan of 300 million euro is for building a new suburban railway network covering four dedicated rail corridors in Bengaluru. The network will stretch over a total of 149 km and include 58 stations and two depots" EIB Vice-President Nicola Beer said here.

The project promotes a modal shift from road to rail and addresses congestion, air and noise pollution, road safety and greenhouse gas emissions while providing an affordable mobility solution to improve access to jobs and study opportunities, she said.

Since 2016, EIB has provided loans worth 3.25 billion euro (about Rs 30,225 crore) for the transport sector across India, Beer said, adding that the country is the largest beneficiary of EIB transport financing outside Europe.

Home to around 1.4 crore people and expected to reach 2 crore by 2030, Bengaluru is India's third most populous city, she said.

"The ElB has already supported the city's transportation sector with a 500 million euro (about Rs 4,650 crore) loan to build the 23 km Bengaluru Metro's R6 line and purchase a fleet of about 96 metro cars," she said.

Once the project is fully operational, the Bengaluru transport system will see a 43 per cent drop in CO2 emissions, she said.

Estimated daily ridership will be close to 4 lakh trips per day in 2029, the first year of full operation, and is expected to increase to about 14 lakh trips per day in 2040, largely aligned with the projected population growth, Beer added.

"The EIB's support for transport in India includes the financing of metro investment in Agra, Bengaluru, Bhopal, Kanpur, Lucknow and Pune, with a total of 3.25 billion euros (Rs 30,225 crore) committed since 2016," she said.