The State Governments/Union Territories which have approached the Central Government for financial assistance to set up metro train network are Chandigarh Administration for Tri-City of Chandigarh, Mohali & Panchkula Metro Rail project, Government of Gujarat for Ahmedabad-Gandhinagar Metro Rail project, Government of Maharashtra for Pune Metro Rail project, Government of Punjab for Ludhiana Metro Rail project and Government of Uttar Pradesh for Lucknow Metro Rail project.
The above proposals are besides the projects that have already been sanctioned by Government of India, which are under operation or under various stages of implementation in Bangalore, Chennai, Delhi, Hyderabad, Jaipur, Kochi, Kolkata and Mumbai.
Govt. of Gujarat had forwarded a proposal in December, 2011 for metro rail corridor between Ahmedabad and Gandhinagar for a total length of 52 kms at a completion cost of Rs 9000 crore and requested this Ministry for Central Financial Assistance to the extent of 25% of the total cost of the project. The proposal did not fit the criteria of funding as per NUTP 2006 according to which Government of India provide funding upto 20% of the cost. Accordingly, the State Government was requested to submit its final proposal as per the GoI norms for funding. The State Government is yet to submit its final proposal.
As per National Urban Transport Policy (NUTP), 2006, Government of India provides funding to the extent of 20% of the cost of metro rail projects either through equity and subordinate debt (for 50% Central taxes/duties) if the project is taken up through a 50:50 jointly owned Special Purpose Vehicle (SPV) of Government of India & the State Government or through Viability Gap Funding (VGF) if the project is taken up in Public Private Partnership (PPP) mode. Government of India also provides upto 50% funding for preparation of Detailed Project Report (DPR) of Mass Rapid Transit System (MRTS) projects.