European Investment Bank Provides €300 Million Loan for Bengaluru Suburban Railway
The European Investment Bank (EIB) has sanctioned a €300 million loan to support the construction of a new 149-km suburban railway network in Bengaluru. This transformative infrastructure project features four dedicated rail corridors, 58 stations, and two depots, aiming to serve an estimated 400,000 trips daily by 2029, growing to 1.4 million trips per day by 2040 as the city’s population rises toward 20 million.
Key Project Highlights
Integrated Urban Mobility: The railway network will connect seamlessly with Bengaluru’s metro system and other public transport modes, creating multimodal hubs that enable smooth transfers and reduce road congestion.
Environmental Impact: By encouraging a modal shift from road vehicles to rail, the project is expected to cut Bengaluru’s CO2 emissions by 43% once fully operational.
Social Inclusivity: Special design features prioritize women’s safety and accessibility, both for passengers and in supporting women’s participation in construction.
Economic Benefits: Enhanced transport connectivity improves access to jobs, education, and services, supporting broader social and economic development in the region.
Funding and Collaboration
The loan complements a previous €500 million loan by EIB for Bengaluru Metro’s R6 line, underscoring EIB’s strong partnership with India’s urban transport sector.
Bengaluru is India’s largest recipient of EIB transport financing outside Europe, with €3.25 billion invested since 2016 across cities like Bengaluru, Pune, Lucknow, and others.
The project is managed by Karnataka Rail Infrastructure Development Company Ltd (K-RIDE) with funding contributions from the Central and State governments alongside multilateral agencies.
Official Statements
Nicola Beer, EIB Vice-President, noted, “Our financing of the Bengaluru suburban railway network complements our investment in the Metro R6 line, together aiming to create India’s most integrated rail network with efficient, clean, and safe public transport.”
Hervé Delphin, EU Ambassador to India and Bhutan, highlighted that this project aligns with the EU Global Gateway Initiative, supporting sustainable and inclusive growth while fostering EU-India cooperation.
| Feature | Details |
|---|---|
| Loan Amount | €300 million (approx. ₹2,700 crore) |
| Track Length | 149 km |
| Number of Stations | 58 |
| Daily Ridership (Projected) | 400,000 trips by 2029, 1.4 million by 2040 |
| Environmental Benefit | 43% reduction in CO2 emissions |
| Integrations | With Bengaluru Metro and other public transit |
| Special Focus | Women’s safety, accessibility, and empowerment |
Frequently Asked Questions
What is the purpose of the €300 million loan from the European Investment Bank for Bengaluru?
The loan finances the Bengaluru Suburban Railway Project, developing a 149-km rail network to improve urban mobility, reduce road congestion, and lower environmental pollution.
How will the new suburban railway integrate with existing transport in Bengaluru?
The network will create multimodal hubs that allow seamless transfers between suburban trains, the metro system, and other public transport modes.
What environmental benefits are expected from the suburban railway?
The project aims to reduce Bengaluru’s carbon emissions by 43% through a shift from road to rail transport, decreasing pollution and traffic congestion.
How will the project address women’s safety and empowerment?
The railway design incorporates enhanced safety and accessibility features for women and promotes their participation in construction activities.
What other projects has the EIB supported in Bengaluru?
Previously, the EIB approved a €500 million loan for Bengaluru Metro’s R6 line and has invested over €3.25 billion across Indian urban transport projects since 2016.
Published on: July 27, 2025
Published by: PAVAN
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