In a significant boost to urban mobility expansion in Uttar Pradesh, the Ministry of Finance has granted in-principle approval for external borrowing of ₹2,883.93 crore for the East–West Corridor of the Lucknow Metro.
The approval was accorded on 20 February 2026 by the Department of Economic Affairs (DEA), enabling the Uttar Pradesh Metro Rail Corporation (UPMRC) to raise funds 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 project cost of the East–West Corridor stands at ₹5,801.05 crore.
High-Level Screening and Approval
The proposal was discussed in a Screening Committee meeting chaired by the Department of Economic Affairs, with participation from:
-
NITI Aayog
-
Ministry of Housing and Urban Affairs
-
Other concerned central ministries
The proposal was initiated by the Government of Uttar Pradesh and presented by UPMRC Managing Director Sushil Kumar, who outlined the project’s alignment, technical features, and financing structure.
Corridor Details: Phase 1B Expansion
The East–West Corridor is being developed under Phase 1B of the Lucknow Metro project.
Key Features:
-
Route: Charbagh to Vasant Kunj
-
Length: 11.165 km
-
Stations: 7 underground + 5 elevated
-
Integration: Interchange with the existing North–South Corridor at Charbagh
The alignment will traverse densely populated areas of Old Lucknow, significantly improving accessibility in congested urban pockets.
The interchange at Charbagh is expected to enhance network efficiency by enabling seamless transfers between corridors.
Funding Structure and Implementation Status
The external borrowing from NDB will cover nearly half of the total project cost, strengthening the financial closure framework.
Two major civil construction tenders have already been floated, with additional packages expected to be tendered in the coming months.
UPMRC has prior experience in implementing metro systems in Lucknow, Kanpur, and Agra, with funding assistance from the European Investment Bank. The NDB-backed financing represents a diversification of multilateral funding sources for metro expansion in Uttar Pradesh.
Official Statement
UPMRC Managing Director Sushil Kumar stated:
“The East–West Metro Corridor will bring substantial ease of travel in Lucknow and benefit lakhs of commuters. Improved connectivity will support economic activity, and as with earlier metro projects, UPMRC remains committed to timely and efficient delivery of world-class urban transport infrastructure.”
Strategic Significance
The funding approval:
-
Strengthens financial viability of Phase 1B
-
Accelerates project execution
-
Enhances connectivity in heritage and high-density zones
-
Supports sustainable urban mobility in Uttar Pradesh
With sovereign backing and multilateral financing in place, the East–West Corridor is positioned to become a critical mobility spine for Lucknow’s expanding urban footprint.
