The European Investment Bank (EIB) will invest €600m in the construction of two metro lines, 30 stations, and 102 rail cars in Pune, southwest India.
The 31km metro system will run both overground and underground, and will serve 600,000 commuters each day while reducing road congestion and pollution.
Andrew McDowell, EIB vice president, said: "Pune metro rail will improve the living conditions of 3 million people in Pune. It will enable more accessible and affordable access to workplaces, healthcare, education and markets.
"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."
The EIB Pune metro contract signing (EIB)
Ugo Astuto, EU Ambassador to India, said: "The fight against climate change is a common priority for both the EU and India. We have been partnering with India on its sustainable urbanisation agenda including development of world-class transport across cities."
The Pune metro will be the EIB’s fourth investment in an Indian metro system, with the bank’s total funding for Bhopal, Bangalore, Lucknow and Pune now reaching €2bn.
Top image: A street in Pune (QuartierLatin1968/India/Wikimedia Commons/CC BY-SA 3.0)