Lucknow, Feb. 22 -- The department of economic affairs under the Union ministry of finance has granted in-principle approval for external borrowing of Rs.2,883.93 crore for the East-West Corridor of the Lucknow Metro, according to officials.

The approval, granted on Friday, allows the Uttar Pradesh Metro Rail Corporation (UPMRC) to raise funds from the New Development Bank (NDB), a multilateral financial institution set up by Brics nations. The loan will be backed by a sovereign guarantee from the Central government. The total estimated cost of the East-West Corridor project is Rs.5,801.05 crore.

Officials said the external funding clearance is expected to accelerate project execution. Two major civil construction tenders have already b...