The decision was taken at the cabinet meeting chaired by Chief Minister AKhilesh Yadav.
"At the meeting it has been decided to start work on the first phase of metro rail project on North-South corridor in state capital," official sources said here.
Among other decisions taken in the meeting, animated movie 'Krishna and Kansa' has been exempted from the entertainment tax in the state, they said.
The cabinet also decided to made certain items like Dholak, Cango, Tabla and other musical instruments in VAT free category besides gram-flour.