Maharashtra Disburses Rs 606 Million ADB Loan To Boost Mumbai Metro Expansion

December 24, 2025: The Maharashtra government has sanctioned the release of Rs 605.9 million to the Mumbai Metropolitan Region Development Authority (MMRDA) from funds received under a loan agreement with the Asian Development Bank (ADB), providing a fresh push to the development of Mumbai Metro Lines 2A, 2B, and 7.

This disbursement is part of an external financing framework under which ADB is supporting the construction of key elevated metro corridors across the Mumbai Metropolitan Region (MMR). Under the established funding structure, MMRDA first incurs project-related expenditure and subsequently applies for reimbursement. Once the expenses are verified and approved by ADB, the funds are channelled through the Government of India to the state government, which then releases the amount to MMRDA as a loan through budgetary allocations.

With the latest tranche, the total loan amount released to MMRDA under ADB assistance for these three metro corridors has now reached Rs 36.42 billion. Among the projects, Mumbai Metro Line 2A, connecting Dahisar West to DN Nagar, and Line 7, linking Andheri East to Dahisar East, are already operational and serving lakhs of daily commuters. Meanwhile, construction work on Metro Line 2B, which will run from DN Nagar to Mandale, is currently underway.

In addition to ADB-backed funding, the state government has also been extending interest-free loan support to accelerate progress on these metro projects. Just last month, Maharashtra allocated Rs 496.3 million to Metro Line 7, Rs 1.13 billion to Line 2B, and Rs 287.9 million to Line 2A as part of this support.

Together, these metro corridors are expected to play a vital role in strengthening east–west and north–south connectivity across the MMR. By offering a reliable mass transit alternative, the projects aim to ease traffic congestion on city roads and reduce the mounting pressure on Mumbai’s suburban railway network, contributing to a more efficient and sustainable urban transport system.

Source: Construction World

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