EIB Funds ₹2,800 Cr for Bengaluru Suburban Railway to Enhance Urban Mobility

The European Investment Bank (EIB Global) has announced a significant loan of €300 million (approximately ₹2,800 crore) for the construction of a new suburban railway network in Bengaluru. This initiative aims to build four dedicated rail corridors covering 149 km, with plans for 58 stations and two depots. EIB Vice-President Nicola Beer highlighted that this project will facilitate a shift from road to rail, effectively tackling issues like congestion, air pollution, and greenhouse gas emissions while enhancing affordable mobility for residents.

Historical Context

Since 2016, EIB has committed approximately €3.25 billion (around ₹30,225 crore) in loans for various transport projects across India, making it the largest beneficiary of EIB transport financing outside Europe. This funding includes a previous loan of €500 million (about ₹4,650 crore) aimed at developing a segment of the Bengaluru Metro.

Future Projections

With Bengaluru’s population expected to rise from 1.4 crore to 2 crore by 2030, the new suburban railway is anticipated to significantly reduce CO2 emissions by 43% once operational. It is projected to handle around 4 lakh trips daily in its first year of full operation (2029), increasing to 14 lakh by 2040, aligned with the city’s growth trajectory. The EIB’s ongoing support also encompasses metro investments in cities like Agra, Bhopal, Kanpur, Lucknow, and Pune.

Piyush Shukla

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