Union Minister Vyalar Ravi said "sanctioning of the Kochi Metro project is a major step in the development of Kerala".
The cabinet at its meeting gave its go-ahead to the fully-elevated link, covering 25.6 km from Alwaye to Petta with 23 stations and a formal announcement would be made tomorrow.
The proposal that had been put forward by the Urban Development Ministry for the cabinet's consideration had suggested starting the Kochi metro network as a 50:50 partnership between the Centre and the state government.
"The cabinet has approved the proposal as per which a Special Project Vehicle or SPV company will be launched for the implementation of the Kochi Metro project," Urban Development Secretary Sudhir Krishna told PTI.
"The Urban Development Secretary would be the ex officio chairperson for the SPV while a full time Managing Director would be appointed by the state government," Krishna added.
The Urban Development Secretary said 5 directors each would be nominated by the state and the central governments on board of the SPV.
"The cost of the project would be Rs 5181. 079 crore and like in the case of Delhi Metro, Japan International Cooperation Agency would be approached for funding," Krishna said.
Kerala government would also form a high-powered committee which would assist the Kochi Metro project in acquisition of land, rehabilitation and ensuring alternative arrangements for public utilities during construction, Krishna said.
