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The Lucknow Metro Phase 1B project, which covers the east-west corridor, has received a major funding boost in the UP Budget 2026-27. A total amount of ₹550 crore has been set aside for this phase, showing the state government's strong focus on improving urban transport.
Lucknow Metro's Funding
Out of this allocation, ₹150 crore has been provided as partial capital investment under urban development expenditure. Another ₹100 crore has been given as loan support to help pay central taxes, while ₹150 crore has been allotted for payment of state taxes. Both of these amounts fall under loans meant for urban development. In addition, ₹150 crore has been kept aside as subordinate debt to support land acquisition required for the project.
How are Lucknow Metro's Funds Placed?
According to an official from Uttar Pradesh Metro Rail Corporation, the funds have been placed under different accounting categories to ensure proper planning and targeted use. This financial support highlights the state government's serious commitment to strengthening public transport and easing travel within the city.
Elevated Metro Corridor
Work on the project is already moving forward. Two tenders have been issued so far. One tender is for building a 5-km elevated metro corridor, which is currently under review by the state government and is expected to be awarded soon. Another tender, worth ₹150 crore, is for constructing a metro depot. A third tender for a 7-km underground tunnel is likely to be released later this year.
Estimated Cost of Lucknow Metro Phase 1B
The total estimated cost of Phase 1B is ₹5,800 crore. Half of this amount, ₹2,900 crore, will be raised through loans from investment banks. The remaining ₹2,900 crore will be shared equally by the central and state governments. From the state's share of ₹1,450 crore, ₹150 crore has been allocated for construction work in the current financial year.
Once completed, the Phase 1B corridor will stretch 11.16 km and connect Charbagh Railway Station to Vasant Kunj through 12 stations. The route will include both elevated and underground sections and pass through important parts of Old Lucknow, improving connectivity across the city.
