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European Investment Bank to provide EUR 500 million for metro in Bengaluru

ANI  |  Bengaluru (Karnataka) [India] 

The European Investment (EIB) will provide EUR 500 million to support the construction of 18 new stations Rapid Transit line in and the purchase of 96 train cars for use on the line.

A press statement by the EIB stated that this is not only the largest EIB loan in India, but also the largest support for sustainable transport outside as well.

"The new support for investment by the Metro Rail Corporation to improve city transport is the largest ever support for sustainable transport outside and will cut travel times for some journeys from 2 hours today to 15 minutes when the new line is complete," read the press statement.

The loan agreement was formally exchanged by EIB vice president Andrew McDowell, and representatives of the Ministry of of the Republic of at the 14th India-European Union summit.

The formal exchange of contracts was attended by Prime Minister Modi, President of the European Council Donald Tusk, and President of the European Commission Jean-Claude Juncker, along with other senior political representatives from and the European Union.

The Asian Infrastructure Investment is expected support the project in the first ever joint financing between the EIB and Asian Infrastructure Investment (AIIB).

"Daily travel for hundreds of thousands people on the Namma Metro will be transformed by expanding urban transport in The impressive Reach six projects show how a world city is providing 21st century sustainable transport for its citizens. The EUR 500 million financing agreed with the European Investment Bank, the Bank of the European Union, demonstrates Europe's commitment to support world class climate related investment across Asia and the increased momentum of EIB financing for urban transport across This new loan follows backing for the impressive Lucknow Metro announced with Prime Minister Modi last year and stronger engagement here in India through our office opened last March," said Andrew McDowell.

The EIB is the world's largest international public bank and is owned by the 28 European Union member states.

Speaking at the summit, the EU Ambassador to India, H.E. Tomasz Kozlowski, said, "The loan for the Metro will contribute greatly to a project that will reduce traffic congestion and pollution in a city that has seen explosive growth in recent years."

Once operational in 2021, the new 22 kilometre reach-six metro line will transform the transport in the southern Indian city.

"The project includes both underground tunnels and elevated tracks. The economic activity in Karnataka capital will benefit from reduced journey time and lower costs. The improved transport links are also expected to reduce green-house gas emissions," the press statement said.

The Bangalore Metro is the first infrastructure project to be jointly financed by the European Investment Bank and the Asian Infrastructure Investment Bank. It is the EIB's second sovereign loan with the Republic of India.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 06 2017. 19:28 IST