NEW DELHI: In a first of its kind move, Bangalore Metro Rail Corporation Limited (BMRCL) is set to issue tax-free 'Metro' bonds to raise money from the market to finance its expansion plan which is under consideration of the finance ministry.

"The Bangalore Metro is the pioneer among the Metros to have proposed bonds to raise funds from the market. Our ministry has supported the proposal," urban development secretary Sudhir Krishna said. The ministry is hopeful of getting clearance from the finance ministry soon.

"It will be a landmark move," Krishna said, adding that UD ministry was also encouraging other Metros to float bonds to raise money from the domestic market.

Asked how much money Bangalore Metro expected to raise through the bond, N Sivasailam, managing director of BMRCL, said, "For Phase I, anything up to Rs 2,000 crore would be sufficient."

Bangalore Metro began commercial operations on a 6.75 km stretch from Baiyappanahalli in Bangalore city to MG Road station.

The first phase of Bangalore Metro, for which work is on, is expected to construct a stretch of 42.3 km. The total project outlay for the Bangalore Metro is Rs 11,609 crore.

Source : timesofindia.indiatimes.com