Rajasthan Govt seeks soft loan from JICA to construct Jaipur Metro Line 2 under EPC model

Jaipur, India (Metro Rail Today): The Rajasthan Urban Development and Housing (UDH) Department has finalized the Engineering, Procurement, and Construction (EPC) model for the much-anticipated Jaipur Metro Line 2, which will connect Sitapura to Vidyadhar Nagar. The state government is now actively pursuing soft loan options from international agencies, including the Japan International Cooperation Agency (JICA), to fund the project.

Confirming the development, UDH Secretary and Managing Director of Jaipur Metro Rail Corporation (JMRC), Vaibhav Galriya, told The Times of India that two funding models were initially considered: the EPC model and the Build-Operate-Transfer (BOT) model. "Hyderabad Metro had tried the BOT model, but it was not successful. Considering this, and in light of our transformation into a joint venture with the Union government, we opted for the EPC model for Jaipur Metro Line 2," Galriya said.

Under the joint venture arrangement, the state government will bear only 20% of the construction cost, while the central government will contribute another 20%. The remaining 60% will be financed through a soft loan, with agencies like JICA under consideration, Galriya added.

Jaipur Metro Line 1 — which connects Mansarovar to Chandpole — was entirely funded by the Rajasthan government, while its extension from Chandpole to Badi Chaupar was supported by a ₹969-crore loan from the Asian Development Bank (ADB). However, repayment challenges have made it difficult for the state to secure further loans independently.

"A joint venture with the central government would give the new JMRC corporation greater financial credibility to obtain soft loans, especially as Jaipur Metro is currently operating at a loss," a senior Metro official stated.

Although no official deadline has been announced, Galriya expressed hope that construction of Jaipur Metro Line 2 will begin within 2025. "We are making all efforts to initiate construction this year, though setting a firm timeline remains challenging," he noted.

Once completed, Jaipur Metro Line 2 is expected to significantly improve urban connectivity, linking key residential, commercial, and industrial zones in the Pink City.