The ultra-modern communication-based train control system will enable Chennai Metro Rail to carry out automatic train operations.
The 75 trains were refurbished under a £55m programme over a five-year period.
The delivery partner will be responsible for the implementation of the project to replace the 150-year-old tunnel.
The new ICE 3neo has been launched between Frankfurt/Main and Cologne.
The agreement also includes the provision of essential infrastructure in the country.
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For the extended sections of Line 7 (Pink Line) & Line 8 (Magenta Line), DMRC will purchase 234 standard gauge coaches.
A strike is expected to lead to as many as 765,000 job losses in the first two weeks alone.
The funding package includes loans and grants from AfDB and its concessional lending window, the African Development Fund.