The Government of India (GoI) and European Investment Bank (EIB) signed the finance contract for the second tranche of Euro 150 million (US$ 182.31 million) for Pune Metro Rail project through a virtual signing ceremony. 

EIB had approved the total loan of Euro 600 million (US$ 729.24 million) to fund the Pune Metro Rail project. The Finance Contract for first tranche of Euro 200 million (US$243 million) was signed between GoI and EIB on July 22, 2019. The project aims to provide efficient, safe, economic and pollution-free Mass Rapid Transit System in densely populated area in the city of Pune served with heterogeneous traffic options.

The financing from EIB will help to fund construction and operation of Corridor 1 (North-South) - Pimpri Chinchwad Municipal Corporation (PCMC) to Swargate and Corridor 2 (West-East) –Vanaz (Kothrud) to Ramvadi, totaling about 31.25 kilometers (km) and related purchase of a related fleet of metro cars. Further, the project will serve large population consisting working class in providing urban mobility for their livelihood.

The metro project has been undertaken by MAHA Metro, an SPV (Special Purpose Vehicle) of Government of India and Government of Maharashtra. The project intends to develop world class metro stations and surrounding areas featuring the rich cultural heritage. 

The total cost of the Pune Metro Rail project is INR 11,420 Crores (US$ 1.55 billion).  Pune Municipal Corporation (PMC) and Pimpri Chinchwad Municipal Corporation (PCMC) each are sharing a 5% cost while GoI and the Government of Maharashtra (GoM) are sharing 20% cost each. The remaining 50% cost is to be met through loan by EIB and Agence Francaise de Developpement (AFD).