ADB approves $240 million loan to accelerate Chennai Metro Phase 2 Expansion

Chennai, India (Metro Rail Today): The Asian Development Bank (ADB) has approved a $240 million loan to support the expansion of the Chennai Metro Rail network, marking the second tranche of financing under the Chennai Metro Rail Investment Project. The funding aims to deliver cleaner, safer, and more reliable urban mobility across the Chennai Metropolitan Area, strengthening the city’s push toward sustainable public transport.

This tranche is part of ADB’s $780 million multitranche financing facility (MFF) approved in 2022 for Chennai Metro Phase-II. It follows the $350 million loan sanctioned earlier under the first tranche. With this latest approval, ADB continues to play a pivotal role in financing large-scale, climate-resilient metro infrastructure in India.

The newly approved financing will support key sections of Metro Lines 3, 4, and 5, covering a total of 20 kilometres of elevated and underground corridors and 18 new metro stations. These stations will feature universal accessibility, inclusive design, and disaster-resilient infrastructure to ensure uninterrupted operations during extreme weather events, a growing concern for coastal cities like Chennai.

Under Tranche-2, ADB funding will be utilised for:

• Line 3 (Elevated Section): Sholinganallur to SIPCOT-2

• Line 4 (Underground Section): Lighthouse to Kodambakkam

• Line 5: Key system works including power supply, traction, and telecommunications

The tranche will also finance improvements to multimodal interchange zones, enabling seamless transfers between the metro, buses, bicycles, and other last-mile transport options.

Beyond core infrastructure, the project places strong emphasis on passenger safety and inclusivity. Measures will be taken to enhance travel safety for women and vulnerable commuters, improve station amenities, and integrate people-friendly design standards.

The project will also support initiatives to strengthen non-fare revenue streams, helping improve the long-term financial sustainability of Chennai Metro operations. Construction activities under this tranche are targeted for completion by mid-2028.

Commenting on the approval, Mio Oka, ADB Country Director for India, said, “This project will deliver safer, faster, and more reliable daily travel in Chennai while advancing the city’s low-carbon development goals. We look forward to continued collaboration to expand metro connectivity and further enhance the capacity of Chennai’s metro and suburban rail systems to meet the city’s growing mobility needs.”

Welcoming the funding support, Mrs. Mamta Shah, MD & CEO, Urban Infra Group, said, “ADB’s continued investment in Chennai Metro Phase-II highlights the growing importance of climate-resilient, high-capacity urban rail systems in India. This funding will not only accelerate project execution but also strengthen Chennai’s position as a model city for sustainable, inclusive, and future-ready public transport.”

ADB is one of the world’s leading multilateral development banks, supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Founded in 1966, the bank is owned by 69 member countries, including 50 from the Asia-Pacific region, and has been a long-term partner in India’s metro rail expansion across multiple cities.

With the latest tranche approval, Chennai Metro Phase-II moves a step closer to transforming urban mobility in Tamil Nadu, offering faster travel, reduced emissions, and improved quality of life for millions of daily commuters.