ADB approves $500 Million loan for Bangalore Metro’s Phase-2 project

The Asian Development Bank (ADB) has approved a $500 million loan to construct new metro rail lines in Bengaluru, India.

Bengaluru is the capital city of the state of Karnataka. The city is a leading center of information technology and high-technology industries such as robotics, biotechnology, and electronics. Bengaluru city has attracted people from other areas seeking employment and its population is estimated to reach over 16 million by 2030. The Bengaluru Metro Rail Project will establish two new metro rail corridors to augment an efficient and safe transportation system.

“This will enhance the economy, improve the urban environment, and make the city more livable. The project supports urban transformation of Bengaluru city through a multidimensional approach of urban public transport and urban development. The new metro lines will ease daily travel of commuters and decongest traffic across the city, contributing to overall productivity,” said ADB Senior Transport Specialist for South Asia Kaoru Kasahara. “The project will provide efficient, punctual, and safe transportation in the city and promote a clean urban environment.”

  • The project will construct two new metro lines, mostly elevated, with a total length of 56 kilometers along Outer Ring Road and National Highway 44 between Central Silk Board and Kempegowda International Airport. 
  • It will also establish 30 metro stations which will include multimodal facilities, such as bus bays, taxi stand, motorcycle pools, and pedestrian walkways and bridges. 
  • The needs of vulnerable groups, such as the elderly, women, children, and differently abled persons, will be integrated in the design of the facilities.
  • An additional $2 million technical assistance grant from ADB will help the state government formulate urban development plans and their implementing frameworks, focusing on transit-oriented development and multimodal integration. 
  • This will also strengthen the capacity of the Bangalore Metro Rail Corporation Limited and other state agencies to implement transit-oriented development and multimodal integration.
  • ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
  • Established in 1966, it is owned by 68 members-49 from the region.

About the project:

  • This 56 km long ORR-Airport Metro from Central Silk Board Junction to Kempegowda International Airport, Bengaluru Terminals via KR Puram and Hebbal is being established by BMRCL at a total estimated cost of Rs. 14,844 Crores and is likely to serve 7.8 lakh commuters daily.
  • The two stations within the Airport boundaries are likely to see the daily ridership of 0.6 lakh commuters in 2024, increasing to 1.88 lakh commuters by 2041.
  • The civil work on the Airport metro section is likely to commence in March 2021.


  • The tenders for the civil works of the 56 km metro viaduct and 30 stations, with estimated cost of over Rs. 3,230 Crores have already been called in 5 packages.
  • The work on the first 2 packages from Central Silk Board Junction to KR Puram are likely to commence in December 2020, and that on the 3 packages from KR Puram to the Airport are likely to commence in March 2021.
  • The Airport section and the section from Hebbal to the Trumpet Junction will be prioritised.


  • The ORR-Airport Metro is being established as per the Metro Policy 2017 with equal equity financing model by the Government of India and the State Government.
  • The approval of the Government of India is expected by December 2020.
  • The Government of India has already posed the project for financing of the project by way of long-term loans of about Rs. 5,800 Crores with moderate interest rate by Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA).
  • The formal approvals for the loans are expected by March 2021.

Source: ADB-Press Release

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