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At a meeting in Gandhinagar, European Investment Bank (EIB) Vice-President Nicola Beer and Director of Finance of Karnataka Rail Infrastructure Development Company Ltd (KRIDE) Awadhesh Mehta formally announced a EUR 300 million loan to build 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.
Home to around 14 million people (expected to reach 20 million by 2030), Bengaluru is India’s third most populous city. The EIB has already supported the city’s transportation sector with a EUR 500 million loan to build the 23 km Bengaluru Metro R6 line and purchase a fleet of about 96 metro cars.
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 EUR 3.25 billion committed since 2016. This makes India the largest beneficiary of EIB transport financing outside Europe.
The Bengaluru suburban railway is expected to unlock significant synergy effects with the existing rail operation, as well as with the metro system, by creating multimodal transport hubs with several interconnecting stations to facilitate a seamless transfer between different public transport modes. 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.
Once the project is fully operational, the Bengaluru transport system will see a 43% drop in CO2 emissions. Estimated daily ridership will be approximately 400 000 trips per day in 2029, the first year of full operation, and is expected to increase to about 1.4 million trips per day in 2040, largely aligned with the projected population growth.
“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,” EIB Vice-President Nicola Beer said.
“Over the past two decades, the EIB has invested nearly EUR5 billion in sustainable projects across India, with an impressive 90% 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,” added EU Ambassador to India and Bhutan Hervé Delphin.
To address India’s urgent urban mobility challenges, the EIB recently established the Urban Mobility Competence Hub, a strategic partnership with Deutsche Bahn Engineering & Consulting. The aim is to support urban transformation by building on Europe’s best practices and extensive technical expertise to develop effective urban mobility solutions for Indian cities. The initiative leverages the EIB’s financial and technical capabilities and Deutsche Bahn’s expertise in the rail sector from concept to commissioning.
Experts from international and local backgrounds work together, mostly in the fields of environmental and social safeguards and procurement. This technical assistance hub will further empower implementation agencies and urban transport entities to develop sophisticated urban mobility solutions effectively and in a timely manner. |
