The European Investment Bank (EIB) has agreed to invest around €600m in the Pune Metro project in the Indian state of Maharashtra.

EIB’s funding will finance the construction of two new metro lines and the procurement of 102 modern metro cars.

The Government of India expects the Pune Metro to reduce the travel time for the approximately three million residents of the city.

Spanning 31km, the Pune metro system includes overground and underground rail tracks with 30 stations.

The metro project will generate around 900 new jobs. It will offer a safer, more affordable, more punctual and faster travel alternative to 600,000 travellers daily.

It aims to reduce the state’s pollution and greenhouse emissions, improving the air quality in the city. It will also increase the safety of female travellers.

EIB vice-president Andrew McDowell said: “Pune metro rail will improve the living conditions of three million people in Pune. It will enable more accessible and affordable access to workplaces, healthcare, education and markets while protecting the environment and improving the quality of air in the city.

“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, contributes to climate action and protection of the environment. I am very proud to see cooperation between Europe and India growing through projects like this.”

EIB has also supported the metro projects in Bhopal, Bangalore and Lucknow. Along with this investment in Pune, EIB has invested a total amount of €2bn in India.

In January, EIB provided a $68m loan to Italian railway authority Ente Autonomo Volturno (EAV).