EIB approves €289.5 million loan for expansion of Nagpur and Pune Metro Rail Projects

New Delhi, India (Metro Rail Today): In a major boost to India’s sustainable mobility drive, the European Investment Bank (EIB) — through its development arm EIB Global — has approved €289.5 million in financing to strengthen urban transport infrastructure in India. The investment will fund the extension of the Nagpur Metro (€240 million) and provide a top-up loan for the Pune Metro (€49.5 million), reinforcing Europe’s commitment to India’s clean and inclusive transport transformation.

This latest financial package builds on EIB’s longstanding partnership with India and aligns with the European Union’s Global Gateway strategy, which promotes sustainable infrastructure and climate-friendly growth across partner nations.

A Major Step Toward Cleaner, Smarter Cities

The two metro projects are designed to shift passenger movement from roads to rail — cutting fossil fuel dependence, curbing air pollution, and reducing road congestion.
According to EIB estimates, these metro extensions will:

• Lower CO₂ emissions and urban air pollution levels significantly.

• Enhance accessibility to jobs, education, and healthcare for millions.

• Improve urban safety and overall mobility efficiency.

“By extending Nagpur’s metro and further supporting Pune’s network, we are helping to deliver cleaner air, safer travel, and faster connections for millions of people,” said Nicola Beer, EIB Vice-President. “These projects show how European financing can have a direct impact on daily lives while supporting India’s green transition.”

Nagpur Metro Extension: A Model for Sustainable Growth

The €240 million loan for Nagpur Metro will fund the network’s expansion across the fast-growing city, doubling its length and capacity.
Once fully operational, the project is expected to:

• Cut CO₂ emissions by 22% in Nagpur’s transport sector.

• Increase ridership to 190,000 passengers daily by 2041.

• Strengthen connectivity across key economic and residential zones.

The expansion supports Maharashtra Metro Rail Corporation Limited (Maha-Metro) in its vision to build an integrated, energy-efficient transit ecosystem in central India.

Pune Metro: Reinforcing Success Through Expansion

The €49.5 million top-up funding adds to the €600 million previously provided by EIB for Pune Metro’s development. 

Since its launch in March 2022, the system has carried over 100 million passengers, demonstrating strong public adoption.

The new loan will enhance network reach, improve last-mile connectivity, and support Pune’s rapid urban expansion — while reducing private vehicle dependency and easing road congestion.

India – EIB’s Largest Transport Partner Outside Europe

EIB’s cumulative financing in India’s transport sector now exceeds €3.6 billion, making India its largest beneficiary globally outside Europe.

Since 1993, EIB has invested more than €5.6 billion across 100+ projects in India, spanning transport, clean energy, and small business development.

Both metro projects form part of the EU’s Global Gateway Investment Agenda, which seeks to mobilize €100 billion by 2027 for sustainable infrastructure worldwide.

EIB Global, established in 2022, serves as the financial catalyst behind this mission, focusing on climate action, mobility, and inclusive growth.

Mrs. Mamta Shah, MD & CEO, Urban Infra Group, welcomed the announcement, saying:

“The European Investment Bank’s latest funding demonstrates the power of international collaboration in shaping India’s sustainable urban future. Investments in projects like the Nagpur and Pune metros not only advance our clean mobility goals but also create resilient cities aligned with the Viksit Bharat 2047 vision. This partnership between India and the EU showcases how green finance can directly accelerate inclusive, technology-driven development.”

The EIB’s €289.5 million investment in Nagpur and Pune metros marks another milestone in India’s journey toward sustainable, low-carbon urban transport. By combining European green finance with India’s rapid infrastructure growth, these projects promise not just better mobility — but cleaner air, stronger economies, and a more sustainable future for millions of urban commuters.