Mumbai, Jan 31 (IANS): The European Investment Bank (EIB) will invest 600 million euros (Rs 4,800 crore) in the upcoming Pune Metro rail, the Maharashtra government said on Friday.

A Memorandum of Understanding for the first tranche of 200 million euros (Rs 1,600 crore) was signed in the presence of Maharashtra Chief Minister Uddhav Thackeray and top EIB officials to fund construction of two new metro lines, 30 stations and purchase of 102 new rail cars.

This will enable easier and affordable access to jobs, healthcare, education, reduce pollution, generate employment and slash commuting time for over 600,000 daily commuters among Pune's three million population, the state government said.

Speaking on the occasion, Thackeray said the funding will boost the ongoing work on the Pune Metro and urged the EIB to finance similar big projects elsewhere in the state.

Work started on the metro in January 2017 with the project's current status standing at 37 per cent physical and nearly 30 per cent financial progress achieved so far, while the fundings received today will be utilised for the underground sections, a metro depot and other purposes, he added.

Thackeray expressed hope that the EIB would similarly support and make investments in the planned Nashik Metro and environment projects in the state.