Friday, March 31 2006 19:11 Hrs (IST) - World Time -

New Delhi: After Delhi Metro, Japan today (Mar 31, 2006) agreed to fund the Bangalore Metro project, clearing the first instalment of Rs 1,699 crore for the city rail transport estimated to cost Rs 5,300 crore.

The first tranche would cover 32 per cent of the total projects cost and if necessary it might give some more assistance to the project later.

Alongwith this, Japan decided to provide an additional Rs 566 crore to the phase-II of the Delhi Metro project.

"The Bangalore Metro Rail project aims to overcome the problems of traffic congestion and air pollution and promote economic activities by replicating the Delhi Metro model," senior Japanese diplomat Hidenao Yanagi told sources.

These two loans are part of about Rs 5,910 crore fund Japan agreed to provide under its Official Development Assistance (ODA) programme for India in 2005-06.

An agreement for this purpose was signed by Japanese Ambassador Yasukuni Enoki and Additional Secretary, Ministry of Finance, Ashok Chawla.

The Bangalore Metro Rail Project has a total length of 33 km and is expected to carry 1.07 million passengers a day.

The proceeds of the loan would be used for civil works in construction of a subway corridor, procurement of signaling and telecommunication facilities and consulting services.

The second phase of Delhi Metro Rail Project comprises five lines (three of which are extension of existing lines), covering a distance of 53 km.