The Maharashtra cabinet has approved an extension of the Nagpur Metro network to Kanhan Town at a cost of Rs 3.1035 bn. The project cost of Rs 310.35 crore will be financed through a mix of equity contributions, interest-free subordinate debt and concessional multilateral loans. Officials said the decision advances plans to expand urban transit in the Nagpur region. Kanhan has a population of nearly 35,000, with an estimated 5,000 to 6,000 people commuting to and from Nagpur every day. The extended corridor is projected to serve around 20,000 additional passengers daily once operational and is expected to benefit residents of nearby localities including Ramtek, Tekdi, Kandri Mines, Nagardhan, Gondegaon Mines and the Mauda Super Thermal Power Project. The extension is intended to offer faster and more reliable transportation for workers, students and industrial employees. The Central Government and the Maharashtra Government will each provide Rs 39.88 crore, equivalent to Rs 398.8 mn, as equity and will also furnish interest-free subordinate debt. The remaining Rs 155.18 crore will be raised through concessional multilateral funding, equivalent to Rs 1,551.8 mn. Project sponsors intend the blended financing to lower borrowing costs and accelerate construction timelines. Officials noted that the extension will reduce travel time, encourage greater use of public transport and ease road congestion across the region. Improved connectivity is expected to enhance access to employment hubs, educational institutions and industrial areas and to support long-term urban growth. The cabinet decision marks a further step in the phased expansion of the Nagpur Metro network. Officials added that the project is expected to generate construction activity and indirect economic opportunities in the region during implementation. Planners will coordinate with local authorities to integrate feeder services and ensure seamless connectivity with existing transit corridors.