Centre may hike Metro rail grant

The Centre is considering a proposal to enhance the viability gap funding available for metro rail projects to 30 per cent from the existing 20 per cent.

Jaipal Reddy, minister for urban development, said here on Thursday that a decision to this effect was likely to be taken by the Union Cabinet in the next few weeks.

"The proposals are in advanced stage," Reddy told the media on the sidelines of a two-day workshop on public-private partnerships (PPPs) in water front, which began here on Thursday.

The workshop is being jointly organised by the Asian Development Bank (ADB), Commonwealth Secretariat and ministries of finance and urban development.

He stated that the Rs 9,200-crore Hyderabad Metro Rail project would be given over Rs 3,000 crore grant under the viability gap funding besides equity participation along with the state government among other incentives by the Centre.