In a statement the Bank said it has allocated $105 million to the Sustainable Urban Transport Project (SUTP) to funds model projects on sustainable transport solutions, which can be replicated by other Indian cities.
These projects include building new bus systems and non-motorised transport development such as cycle track investments.
The Urban Transport Project is also supported by a $20.5 million grant from the Global Environment Facility (GEF), the Bank said.
"The main goal of SUTP is to support the achievement of that vision by helping create a successful project that can spur a shift toward sustainable urban transport policies and programs at the state and local level," said Roberto Zagha, World Bank Country Director for India.
The Bank also approved another $300 million loan for the Andhra Pradesh Municipal Development Project (APMDP), which will finance sustainable, high-priority urban infrastructure projects, implemented by local bodies.
"The main goal of this project is to help strengthen the capacity of these local self government institutions to enable them to sustain and expand urban services," Zagha said.
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