Finance Ministry approves ₹2,883.93 crore External Funding for Lucknow Metro East–West Corridor

Lucknow, India (Metro Rail Today): In a significant boost to the expansion of the Lucknow Metro, the Department of Economic Affairs (DEA) under the Ministry of Finance, Government of India, has granted in-principle approval for external borrowing of ₹2,883.93 crore for the East–West Corridor of the Lucknow Metro.

The approval, issued on 20 February 2026, enables Uttar Pradesh Metro Rail Corporation (UPMRC) to raise external funding from the New Development Bank (NDB), a multilateral financial institution established by BRICS nations. The borrowing will be backed by a sovereign guarantee from the Government of India. The total estimated cost of the East–West Corridor project stands at ₹5,801.05 crore.

The funding proposal was discussed in a Screening Committee meeting chaired by the Department of Economic Affairs, with participation from NITI Aayog, the Ministry of Housing and Urban Affairs, and other concerned central ministries. The proposal was initiated by the Government of Uttar Pradesh and presented by UPMRC Managing Director Shri Sushil Kumar, who outlined the project’s scope, technical features and funding structure.

The East–West Corridor forms part of Phase 1B of the Lucknow Metro project and will run from Charbagh to Vasant Kunj. The 11.165-km corridor will comprise seven underground and five elevated stations, significantly enhancing connectivity across densely populated areas of Old Lucknow. The corridor will also provide seamless interchange with the existing North–South Corridor at Charbagh, improving network integration and commuter convenience.

With external funding now cleared, the project is expected to gain momentum. Two major civil construction tenders have already been floated, and additional packages are scheduled to be tendered in the coming months.

UPMRC has previously implemented metro projects in Lucknow, Kanpur and Agra with financial support from the European Investment Bank. The approval of funding from the New Development Bank marks another milestone in strengthening the financial framework for metro expansion in Uttar Pradesh.

Commenting on the development, Shri Sushil Kumar, Managing Director, UPMRC, stated that the East–West Metro Corridor will substantially ease travel within Lucknow and benefit lakhs of commuters. He added that improved urban mobility will stimulate economic activity and reaffirmed UPMRC’s commitment to delivering world-class metro infrastructure in a timely and efficient manner.

The funding approval is expected to accelerate implementation of the East–West Corridor and further strengthen Lucknow’s growing urban transit network.