European Investment Bank provides Rs 2,800 crore loan for Bengaluru suburban railway

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GANDHINAGAR: European Investment Bank (EIB) on Friday formally announced a Euro 300 million (Rs 2800 crore) loan to build a new suburban railway network covering four dedicated rail corridors in Bengaluru. A loan agreement was signed in Gandhinagar with the Karnataka Rail Infrastructure Development Company’s Director of Finance Awadhesh Mehta.

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 Bank has already supported the city’s transportation sector with a Euro 500 million (Rs 4650 crores) loan to build the 23 km Bengaluru Metro R6 line and purchase a fleet of about 96 metro cars.

The Bank’s support for transport in India includes the financing of metro investment in Agra, Bengaluru, Bhopal, Kanpur, Lucknow and Pune, with a total of Euro 3.25 billion (Rs 30,225 crores) committed since 2016. This makes India the largest beneficiary of EIB transport financing outside Europe.

Once the project is fully operational, the Bengaluru transport system will see a drastic drop in carbon dioxide 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.

“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,” said EIB Vice-President Nicola Beer.

Talking to ANI in Gandhinagar, Beer said they are already a long time invested in India, and are on a very good terms with the central government and the regional governments.

EU Ambassador to India and Bhutan Herve Delphin said: “Over the past two decades, the EIB has invested nearly Euro 5 billion in sustainable projects across India, with an impressive 90 per cent 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,” the envoy added.

The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. (ANI)

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