European Investment Bank strengthens partnership with India through fresh financing for sustainable infrastructure

The European Investment Bank’s development arm, EIB Global, has announced new financing worth more than Rs 5,200 crore to support clean water, sustainable transport, and green energy initiatives across India. The move marks a renewed phase of cooperation between the European Union and India under the EU’s Global Gateway strategy.

The latest financing package includes EUR 289.5 million (about Rs 3,040 crore) for metro networks in Nagpur and Pune, EUR 191 million (around Rs 1,695 crore) for upgrading water and sanitation infrastructure in Uttarakhand, and USD 60 million (approximately Rs 530 crore) towards India’s energy transition fund.

These commitments were made during EIB Vice-President Nicola Beer’s visit to India in October 2025, aimed at strengthening partnerships with government agencies, private sector players, and financial institutions to scale up climate-focused investments.

Boost To Urban Mobility
EIB Global will provide EUR million for the Nagpur Metro extension and an additional 4EUR 9.5 million loan for the Pune Metro. The investments are expected to promote cleaner, more efficient public transport, reduce congestion, and cut carbon emissions. Once fully commissioned, the Nagpur Metro is projected to lower transport-related CO₂ emissions by 22 per cent, while the Pune Metro will continue expanding access to safe and reliable green mobility for more than 100 million passengers annually.

Improving Water Access In Uttarakhand
In a separate agreement, EIB Global will lend USD 191 million to modernise water supply and sanitation systems in Uttarakhand. The project aims to provide reliable, clean water to about 900,000 residents, including underserved and low-income households. It will also support leakage reduction, network expansion, and improved monitoring and service efficiency.

Investment In Energy Transition Fund
EIB Global has committed up to USD 60 million to the India Energy Transition Fund, managed by EAAA Alternatives. The USD 300 million fund will invest in renewable energy, transmission networks, battery storage, electric mobility, and circular economy projects. The initiative is expected to contribute to an estimated 298 million tonnes of CO₂ reduction over its lifetime and generate about 38 million job-years.

Strengthening India–EU Climate Cooperation
Announcing the agreements in New Delhi, EIB Vice-President Nicola Beer said the new operations highlight the depth of EIB Global’s engagement in India’s sustainable development agenda.

“These three new operations demonstrate the full strength and breadth of EIB Global’s partnership with India, delivering real impact across clean water, sustainable transport and the green energy transition,” Beer said. “By supporting state-of-the-art metro systems, modernising vital water infrastructure and mobilising new private capital for climate action, we are helping India build resilient, healthy and connected communities for the future.”

The investments reinforce the growing alignment between India’s development priorities and the EU’s Global Gateway strategy, which seeks to promote sustainable infrastructure and climate resilience through international partnerships.