New Delhi: In a first-of- its- kind initiative by the metro transport sector in the country, the Delhi and Bangalore Metro Corporation will introduce metro bonds in the market to raise money for its expansion. The Urban Development Ministry has forwarded the proposal in this regard to the Union Ministry of Finance for approval.

After the success of metro rail service in Delhi, the other city to join the league was Bangalore. In order to raise fund from the market the Bangalore Metro Rail Corporation Limited (BMRCL) is mulling to issue tax free bonds for further development in the sector. BMRCL needs Rs 2000 cr for completing the project.

"The BMRCL is the pioneer among the Metros to have proposed tax free bonds to raise funds from the markets," Urban Development Secretary Sudhir Krishna said here on Friday.

Krishna further said, "We are hopeful of getting clearance from the Finance Ministry soon and it will be a landmark initiative.”

The Urban Development Secretary also said Karnataka government has also introduced an infrastructure tax by imposing cess on certain items, which could help funding projects like the Metro.

The Bangalore Metro began its commercial operations on a 6.75 kilometer stretch from Baiyappanahalli in Bangalore city to M G road station.

The first phase of Bangalore Metro, for which work is on, is expected to create a Metro line running up to 42. 3 kilometres. The total project outlay for the Bangalore Metro is Rs 11, 609 crore.

Meanwhile, the Urban Development Secretary clearly indicated that in small cities Bus Rapid Transport (BRT) will be promoted instead of metro service. Skirting away from the BRT service operational in Delhi, the Secretary said that the project has been successful in cities like Ahmedabad. More so, the government has been promoting bus services through Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme.

JPN/Bureau