The €500m loan will support the construction of a new 18 station rapid transit line in Bangalore and the purchase of 96 train cars for use on the line. This support for investment to expand the second longest urban metro system in the country is the largest-ever EIB loan in India and also the largest-ever support for sustainable transport outside Europe.
The new support for investment by Bangalore Metro Rail Corporation will cut travel times for some journeys from 2 hours today to 15 minutes when the new line is complete. Once operational in 2021 the new 22km Reach 6 metro line will transform transport in the southern Indian city. The project includes both underground tunnels and elevated tracks.
The loan agreement was formally exchanged at the 14th India-European Union summit, where EIB also formalised an agreement with International Solar Alliance to mobilise finance to develop and deploy affordable solar energy in solar-rich countries. The bank has confirmed plans to provide a €800m for renewable energy investment across India.
“Global cooperation is essential to tackle climate change and closer cooperation between the International Solar Alliance and the European Investment Bank will mobilise international climate finance and improve sharing of technical experience,” said European Investment Bank vice president Andrew McDowell. “This new agreement reflects our shared commitment to successful implementation of the Paris Climate Agreement and ensuring that solar-rich economies can harness solar power to increase the supply of affordable clean energy.”