The European Investment Bank (EIB) has agreed to finance €600m for the development of €1.77bn Pune metro project in Maharashtra, India.

The first tranche of €200m from the EIB will be used to fund the construction of two new lines of city metro rail, 30 stations and purchase of 102 new rail cars.

Maharashtra Metro Rail Corporation (Maha Metro), a special purpose vehicle created by the Government of India and the Government of Maharashtra, is the implementing authority of lines one and two of the Pune metro project.

The Pune metro system involves the construction of 31km of tracks, both over- and underground, with 30 stations.

In addition to improving economic outlooks in the city, the project is expected to increase air quality while reducing greenhouse emissions.

EIB vice-president Andrew McDowell said: “Pune metro rail will improve the living conditions of three million people in Pune. It will enable more accessible and affordable access to workplaces, healthcare, education and markets, while protecting the environment and improving the quality of air in the city.

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“This is a good example of how international cooperation and local know-how can make tangible improvement for people and businesses alike, and at the same time contribute to climate action and protection of the environment.”

Upon completion, the new metro rail system is expected to create 900 new jobs and is aimed to reduce commuting hours while offering affordable and faster commutes each day.

EU Ambassador to India Ugo Astuto said: “This agreement further demonstrates the close cooperation between the EU and India in financing related projects.”

The 16.58km-long line one of the Pune metro project will comprise 14 stations, which will include five underground stations while the 14.66-km long line two will be served by 16 elevated stations.

The Pune Metropolitan Region Development Authority (PMRDA), through a public-private partnership (PPP), will develop line three of the project. The 23.3km-long line will comprise 23 elevated stations.

EIB has approved funding for the Pune metro project in India. (Credit: European Investment Bank)