$240 million ADB loan for Chennai Metro approved for expansion

The $240 million ADB loan for Chennai Metro has been approved, according to the Asian Development Bank (ADB). It funds new corridors, stations and system development on sections of lines 3, 4 and 5 to improve mobility, climate resilience and inclusive transport across the Chennai Metropolitan Area.

This is reported by the railway transport news portal Railway Supply.

ADB says the loan is the second tranche under its $780 million multitranche financing facility approved in 2022 for the Chennai Metro Rail Investment Project, building on the framework described in ADB’s earlier announcement on the multitranche financing facility for Chennai. It follows the earlier $350 million first-tranche loan and continues support for expanding public transport capacity, with an emphasis on cleaner, safer, and more reliable travel aligned with Chennai’s low-carbon development goals.

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$240 million ADB loan for Chennai Metro: lines 3, 4 and 5 works

Under tranche 2, funding will go toward construction and system development on key sections of Chennai Metro lines 3, 4, and 5. In total, the corridors are expected to span around 20 kilometers, combining elevated and underground alignments. The plan also calls for 18 new metro stations, designed with universal access features so passengers of all abilities can use them more easily.

Another stated priority is keeping the system resilient during disruption. The project places emphasis on disaster-resilient measures intended to help metro services remain safe and operational during extreme weather events—an important consideration for a coastal city increasingly exposed to climate-related risks.

Key sections and system development under tranche 2

ADB outlined a package of civil and systems work to be supported under the tranche. It includes elevated civil works for metro line 3 between Sholinganallur and SIPCOT-2, along with underground construction for metro line 4 between Lighthouse and Kodambakkam. For metro line 5, the tranche supports system components such as power supply, traction systems, and telecommunications.

The loan also covers upgrades to multimodal interchange hubs, aimed at improving integration with buses, bicycles, and other last-mile transport options. The intention is smoother transfers and wider use of public and non-motorised transport.

Inclusivity, safety, and long-term sustainability

In comments on the project, ADB Country Director for India Mio Oka said it will deliver “safer, faster, and more reliable daily travel in Chennai” while advancing the city’s low-carbon development goals. He added that ADB looks forward to continued collaboration to expand metro connectivity and to enhance the capacity of Chennai’s metro and suburban rail systems to meet the city’s growing mobility needs.

Beyond physical works, the tranche also highlights inclusion and safety. Station design is set to incorporate accessibility features, while targeted measures aim to improve travel safety for women and vulnerable users. The programme also supports initiatives to increase non-fare revenues, strengthening the long-term financial sustainability of the Chennai Metro system.

Construction under this tranche is scheduled for completion by mid-2028, moving the Chennai Metro Rail Investment Project another step closer to a modern, integrated, and resilient urban transport network for the region.

ADB has described the $240 million loan as a major milestone in Chennai Metro’s expansion, supporting sustainable transport, climate resilience, and inclusive urban development. For additional context on ongoing Chennai Metro expansion activity, see related coverage from Railway Supply.

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