The European Investment Bank (EIB) has announced a major initiative to improve India’s transportation infrastructure. This was reported by the railway transport news portal Railway Supply.

At a meeting in Gandhinagar, EIB Vice President Nikola Beer and Karnataka Rail Infrastructure Development Company Ltd’s Chief Financial Officer, Awadhesh Mehta, confirmed a €300 million loan for a new railway project in Bangalore.

European gauge construction on the Chop—Uzhhorod section will be completed by 2025

This project spans 149 kilometers of suburban railway with 58 stations and two depots, significantly enhancing transportation access for millions of people in Bangalore and nearby areas.

Improve India’s Transportation Infrastructure with Modern Railway Projects

Bangalore, with a population of about 14 million that could reach 20 million by 2030, urgently needs transportation solutions. The EIB has already supported the city’s transportation network, previously investing €500 million in the R6 metro line and purchasing 96 metro cars, which will greatly expand the network’s capacity. This highlights the importance of projects aimed at creating a modern transportation system in one of India’s largest cities.

Beyond Bangalore, the EIB actively supports transportation projects in Agra, Bhopal, Kanpur, Lucknow, and Pune, investing €3.25 billion in India’s transportation infrastructure since 2016. This support has made India the EIB’s largest partner outside Europe in the transportation sector. The planned suburban railway network in Bangalore will include multimodal hubs, connecting with metro and other public transport, helping reduce congestion and improve environmental conditions.

How Efforts to Improve India’s Transportation Infrastructure Aid Climate Goals

The project will significantly reduce CO₂ emissions by 43% and improve road safety, positively impacting the quality of life. The daily passenger capacity is estimated at around 400,000 trips by 2029, the first year of full operation, growing to 1.4 million trips per day by 2040, in line with the city’s projected population growth.

EIB Vice President Nikola Beer highlighted the project’s importance for the city, stating that the €300 million funding will greatly improve Bangalore’s transportation access. She noted that the suburban rail network will support creating an integrated transportation system, connected with other transport types, allowing the city to unify its transportation networks. The project also includes safety measures for women, which will be an important step towards creating comfortable conditions for all passengers.

EU Ambassador to India, Herve Delphin, emphasized that the EIB has invested around €5 billion in sustainable projects in India over the past two decades, with 90% focused on climate change. A large portion of these funds has gone toward public transportation, including metro projects in India’s six largest cities. This new initiative will allow Bangalore residents to commute faster and more sustainably, opening opportunities for growth and strengthening cooperation between the EU and India.

To more effectively address transportation challenges in India’s cities, the EIB recently launched the Urban Mobility Competence Hub, a strategic partnership with Deutsche Bahn Engineering & Consulting. The hub provides expert support for developing solutions based on leading European experience. Specialists with international and local expertise work together, focusing on environmental and social safeguards as well as procurement.

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