European Investment Bank commits €300 million for Bengaluru suburban railway project

The European Investment Bank (EIB), the lending arm of the European Union, said on Friday that it has approved a €300 million loan to develop a suburban railway network in Bengaluru. The ambitious project will span 149 km, encompassing four rail corridors, 58 stations, and two depots, aimed at alleviating pollution, reducing congestion, and enhancing passenger safety, particularly for women.

The new railway system, scheduled for full operation by 2029, is expected to integrate with the city's metro and rail systems, establishing multimodal hubs that will enable seamless transfers between various modes of public transportation.

"The Bengaluru suburban railway is expected to unlock significant synergy effects with the existing rail operation, as well as with the metro system, by creating multimodal transport hubs with several interconnecting stations to facilitate a seamless transfer between different public transport modes," the EIB said in a statement.

The project also aims to shift urban commuters from road to rail, addressing critical urban issues such as traffic congestion, air and noise pollution, and road safety. "The project promotes a modal shift from road to rail and addresses congestion, air and noise pollution, road safety and greenhouse gas emissions while providing an affordable mobility solution to improve access to jobs and study opportunities," the EIB added.

On completion, the suburban network is projected to reduce Bengaluru’s carbon emissions by 43%. The daily ridership is expected to reach 400,000 trips during the first year of operations, eventually scaling to 1.4 million trips per day by 2040, underlining its transformative impact on urban mobility.

"This funding (€300 million) complements the €500 million we allocated for the construction of the Bengaluru Metro R6 line, addressing Bengaluru’s mobility challenges by developing a clean, modern and efficient public transport system," said EIB vice-president Nicola Beer.

Beer highlighted EIB’s strategy of creating an integrated urban transport ecosystem. "The two projects we are financing in Bengaluru aim to create India’s most interconnected rail network, providing seamless connectivity with all other modes of public transport in the city."

Since 1993, the EIB has invested close to €5 billion ( ₹46,500 crore) across various sectors in India, supporting projects aligned with the country’s climate action goals, sustainable transport, and renewable energy initiatives. Its investments include metro systems in cities such as Agra, Kanpur, Lucknow, and Pune, alongside substantial commitments to solar, wind, and water infrastructure.

EIB's growing portfolio reflects its focus on urban mobility and sustainable infrastructure in South Asia. The bank recently launched the Urban Mobility Competence Hub in partnership with Deutsche Bahn Engineering & Consulting to leverage European expertise for urban transformation in Indian cities. "The initiative leverages the EIB’s financial and technical capabilities and Deutsche Bahn’s expertise in the rail sector from concept to commissioning," it said.