European Investment Bank (EIB) on 30 March 2016 announced that it will invest 33 billion rupees (450 million Euros) for the first metro line in Lucknow, Uttar Pradesh. This investment will be EIB’s largest ever financing in India.
The announcement was made by President of the bank, Werner Hoyer at the 13th India-EU summit held in Brussels.
This agreement to construct the Lucknow metro was signed in the presence of Prime Minister Narendra Modi who was on a one day visit to Belgium to attend India-EU summit.
Key details of the Agreement
• The 450 million Euros long-term loan will be used to finance the first metro line in Lucknow, including both construction of the 23km long new metro line and a fleet of metro trains.
• The line is the first part of an expected broader metro network planned for the capital of Uttar Pradesh, the most populous state in India.
• Once operational the new metro is expected to increase use of public transport from 10% to an estimated 27% in the city of 3 million people.
The European Investment Bank has provided more than EUR 1.34 billion for long-term investment in India since the first operation in 1993.
European Investment Bank
The EIB is the European Union's bank. It is the only bank owned by and representing the interests of the European Union Member States. It also works closely with other EU institutions to implement EU policy.
As the largest multilateral borrower and lender by volume, it provides finance and expertise for sound and sustainable investment projects which contribute to furthering EU policy objectives. More than 90% of its activities are focused on Europe but the bank also supports the EU's external and development policies.
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