Industrial Automation Magazine India

EIB invests euro650 million into city metro rail for Kanpur

Published on : Tuesday 01-09-2020

EU bank to invest €650 million in Kanpur city rail in its second biggest operation outside the EU to date.

Luxembourg/Kanpur, August 31, 2020 – The European Investment Bank (EIB) will invest €650 million into the construction of Kanpur's first city metro line, enabling some 3 million people in the city of Kanpur, India, to benefit from green, safe, fast and affordable public transport. The new metro rail system will reduce commuting hours and unlock new employment and education opportunities in Kanpur, the industrial capital of Uttar Pradesh. This is the second metro rail project supported by the EIB in Uttar Pradesh, following the €450 million investment in the development of a metro rail system in the city of Lucknow.

The second biggest EIB operation outside the EU to date will finance the construction of a 32.4 km urban rail line, with 18 elevated and 12 underground stations. Once completed, Kanpur metro rail will create 1 100 new jobs and enable around 116 million more affordable commutes each year.

This is the fifth EIB investment in green infrastructure and connectivity in India and the second in the state of Uttar Pradesh. The EU bank has invested in metro rail systems in Bhopal, Pune, Bangalore and Lucknow. With the Kanpur investment, the total amount of the EIB's approved support for metro rail systems in India has reached €2.65 billion, more than half of the entire EIB investment portfolio in India.

In addition to creating an affordable and accessible public transport network and a reliable alternative to heavily congested streets, the new metro will reduce pollution and greenhouse gas emissions and improve air quality across the city. With easier access to the local job market, healthcare and education for residents, Kanpur metro rail will have a positive impact on quality of life and doing business, and increase safety for female travellers.

Andrew McDowell, Vice-President of the European Investment Bank, said: "Kanpur is the fifth metro rail project to receive EIB funds in India and the biggest investment made by the Bank outside the EU. The metro will have a positive impact on quality of life and doing business in the city through access to affordable transport, creating new employment and education opportunities. It will be a safe, green and affordable transport alternative for Kanpur and its visitors. We are also glad to see this project is contributing to global climate action while strengthening EU-India relations."

The EIB investment will accelerate the social and economic recovery of the city in the aftermath of the COVID-19 pandemic and support the long-term re-emergence of the local economy. The investment also bolsters the Government of India and its Urban Development "Smart Cities Mission", as Kanpur is one of the first 100 targeted Smart Cities in the country.

The Kanpur metro rail project will help India achieve a number of UN Sustainable Development Goals (SDGs), namely SDG 13 (climate action), SDG 11 (sustainable cities) and SDG 5 (gender equality).