The Uttar Pradesh cabinet has given its approval for the execution of a tripartite Memorandum of Understanding (MoU) signed by the central government, the state government, and the Uttar Pradesh Metro Rail Corporation Limited for the Lucknow Metro's East-West Corridor, connecting Charbagh to Vasant Kunj. This binding document will enable the government to approach the New Development Bank (NDB), a multilateral development bank established by the BRICS nations, for a loan.
Lower Interest Rates from NDB
Sources indicate that the NDB offers significantly lower interest rates compared to the European Investment Bank, which had previously funded Lucknow Metro's first corridor, as well as the Agra and Kanpur metro projects. This financial advantage is expected to reduce the overall cost of the project.
Project Background and Approval
The state cabinet had earlier approved the detailed project report for the corridor in March 2024. Subsequently, the Union Ministry of Housing and Urban Affairs sanctioned the project in September 2025 at an estimated cost of Rs 5,801 crore. However, the central government's approval came with a condition that a tripartite MoU must be signed for the implementation of the project.
“The state cabinet has now approved the signing of the MoU in accordance with the revised draft prepared by the law department. The agreement clearly outlines the roles and responsibilities of the state government and other stakeholders in the execution of the project,” a source said.
Significance of the MoU
This MoU is a crucial step forward for the East-West Corridor, which will enhance connectivity in Lucknow. With the binding document in place, the government can now formally approach the NDB for funding. The lower interest rates from NDB are expected to ease the financial burden on the state and ensure timely completion of the project.
The East-West Corridor is a vital part of Lucknow's metro network, aimed at providing efficient and sustainable public transportation. The project is expected to benefit thousands of commuters daily, reducing traffic congestion and pollution in the city.
