€300M EIB Loan Approved for Bengaluru Suburban Railway Project in India

The project will create four rail corridors across the city, spanning 149 km with 58 stations and two depots, marking a significant enhancement of Bengaluru’s public transport infrastructure.

At a key meeting in Gandhinagar, European Investment Bank (EIB) Vice-President Nicola Beer and Karnataka Rail Infrastructure Development Company Ltd (KRIDE) Director of Finance Awadhesh Mehta jointly announced a €300 million loan to fund Bengaluru’s new suburban railway network. The project will create four rail corridors across the city, spanning 149 km with 58 stations and two depots, marking a significant enhancement of Bengaluru’s public transport infrastructure.

Bengaluru, with a current population of 14 million projected to reach 20 million by 2030, is India’s third-largest city. The EIB’s support builds upon an earlier €500 million investment for the Bengaluru Metro R6 line and the procurement of 96 new metro cars. This new suburban railway will connect directly with the metro system and existing rail services, enabling a more integrated, multimodal public transport network. Once operational, the suburban railway is expected to reduce CO₂ emissions by 43%, alleviate congestion, and enhance road safety, particularly benefiting local communities by increasing access to jobs and education.

In India, the EIB has financed sustainable transport across multiple cities, committing €3.25 billion since 2016, making India the bank’s largest non-European beneficiary of transport investment. Major metro projects in Agra, Bhopal, Kanpur, Lucknow, Pune, and Bengaluru have benefited from this partnership, contributing significantly to India's climate action goals.

The suburban railway will serve around 400,000 daily riders when it opens in 2029, with ridership anticipated to grow to 1.4 million by 2040, aligning with the city’s rapid population growth. Designed with dedicated safety features to enhance women’s mobility, the project also promotes women’s participation in construction and operation. EIB Vice-President Nicola Beer commented, “We are honoured to finance the Bengaluru suburban railway network with a €300 million loan. This project, alongside the Bengaluru Metro R6 line, will help create one of India’s most advanced, integrated public transport systems, delivering affordable, safe, and accessible options for all."

EU Ambassador to India and Bhutan Hervé Delphin highlighted the substantial EIB investments in climate-focused projects across India. “With nearly €5 billion invested in sustainable initiatives, including metros across six Indian cities, the EIB has shown its commitment to supporting India’s mobility transformation. Today’s agreement under the EU Global Gateway Initiative will enable Bengaluru, a leading technology and manufacturing hub, to grow through greener, faster commutes, creating positive social and environmental impacts,” Delphin said.

To address the challenges of urban mobility in India, the EIB recently launched the Urban Mobility Competence Hub in partnership with Deutsche Bahn Engineering & Consulting. This hub, a key part of the EIB’s strategy, brings European technical expertise to the development of mobility solutions for Indian cities. The partnership aims to support sustainable urban transformation through technical collaboration, focusing on project design, environmental and social standards, and efficient procurement. By combining EIB’s funding expertise with Deutsche Bahn’s rail sector knowledge, the Competence Hub will work closely with Indian authorities to help cities like Bengaluru meet urban mobility needs effectively.

This project is a cornerstone in India-EU relations, demonstrating the commitment of both regions to clean and inclusive public transport solutions that prioritize environmental sustainability and equitable urban growth.