UP Budget 2026-27 Boosts Lucknow Metro with Rs 550 Crore Allocation for Phase 1B
The Uttar Pradesh government has demonstrated a strong commitment to enhancing urban mobility in Lucknow by allocating a substantial Rs 550 crore for the Lucknow Metro rail project's Phase 1B in the state budget for the fiscal year 2026-27. This significant financial provision, announced on Wednesday, specifically targets the development of the east-west corridor, marking a pivotal step in the city's infrastructure expansion.
Detailed Breakdown of the Budgetary Allocation
The Rs 550 crore allocation is meticulously structured under various accounting heads to ensure efficient and focused financial planning for the metro project. According to an official from the Uttar Pradesh Metro Rail Corporation (UPMRC), this approach facilitates transparent and strategic fund utilization.
- Rs 150 crore has been designated as partial capital investment, categorized under capital outlay for urban development. This fund is intended for direct expenditure on project components.
- Rs 100 crore is allocated as loan support specifically for the payment of central taxes associated with the project.
- Rs 150 crore is set aside for the payment of state taxes, with both tax-related allocations falling under loans for urban development.
- An additional Rs 150 crore has been earmarked as subordinate debt to facilitate crucial land acquisition processes necessary for the corridor's construction.
Project Scope and Current Progress
Phase 1B of the Lucknow Metro is an ambitious 11.16-kilometer corridor that will connect Charbagh Railway Station to Vasant Kunj, passing through 12 strategically located stations. The route is designed to enhance connectivity across key areas of Old Lucknow, featuring a diverse structural layout:
- A 4.28 km elevated section with five stations, providing aerial transit over congested areas.
- A 6.87 km underground tunnel section with seven stations, minimizing surface disruption in densely populated zones.
The project is already advancing with active tendering processes. Two tenders have been floated: one for a five-kilometer elevated corridor, currently under state review and expected to be awarded shortly, and another worth Rs 150 crore for the construction of a dedicated metro depot. A third tender, for the seven-kilometer underground tunnel, is anticipated to be released within the current year, signaling accelerated project momentum.
Financial Framework and Funding Strategy
The total estimated cost for Phase 1B is a substantial Rs 5,800 crore, reflecting the scale of this urban infrastructure initiative. The funding strategy involves a multi-source approach:
- Rs 2,900 crore will be raised through loans from investment banks, providing a significant portion of the required capital.
- The remaining Rs 2,900 crore will be jointly funded by the central and state governments in an equal 50:50 ratio.
- Of the state's share amounting to Rs 1,450 crore, Rs 150 crore has been specifically allocated for construction work in the current financial year, ensuring immediate progress on ground operations.
This comprehensive financial plan underscores the government's dedication to transforming Lucknow's public transportation network, aiming to reduce traffic congestion, improve commuter convenience, and stimulate economic growth along the new corridor. The strategic allocations in the UP Budget 2026-27 are poised to catalyze the timely completion of this critical infrastructure project, benefiting millions of residents and visitors in the state capital.
