The Government of Maharashtra has approved the release of Rs 605.9 million to the Mumbai Metropolitan Region Development Authority from loan proceeds received from the Asian Development Bank for Mumbai Metro Lines 2A, 2B and 7.

The release forms part of an external borrowing arrangement under which ADB is financing the construction of key elevated metro corridors in Mumbai. As per the funding mechanism, MMRDA initially incurs project expenditure and later seeks reimbursement. Once cleared by ADB, the funds are routed through the Government of India to the state, which then disburses the amount to MMRDA as a loan through budgetary provisions.

With this tranche, the cumulative loan amount released to MMRDA under ADB assistance for the three metro corridors has reached Rs 36.42 billion. Mumbai Metro Line 2A (Dahisar West–DN Nagar) and Line 7 (Andheri East–Dahisar East) are already operational, while Line 2B (DN Nagar–Mandale) is currently under construction.

Last month, the state government had also extended interest-free loan support for these projects, allocating Rs 496.3 million to Line 7, Rs 1.13 billion to Line 2B and Rs 287.9 million to Line 2A.

The metro corridors are seen as critical to improving east–west and north–south connectivity in the Mumbai Metropolitan Region, easing congestion on roads and reducing pressure on the suburban rail network.