MUMBAI (Reuters) – German Chancellor Angela Merkel said on Saturday her country will spend one billion euros ($1.12 billion) in the next five years on green urban mobility projects conceived under the new German-Indian partnership.

Merkel, accompanied by several cabinet colleagues and a business delegation, began talks with Indian Prime Minister Narendra Modi that will focus on trade, investment, regional security and climate change.

Germany is India’s largest trading partner in Europe and more than 1,700 German companies operate in the country.

German funds will be used to finance several environment friendly projects such as the introduction of electric buses to replace diesel ones used for public transport in urban centres.

($1 = 0.8957 euros)