The state Cabinet gave its consent on Tuesday to a draft agreement between the Union, the state and the Maharashtra Metro Rail Corporation (MAHA-Metro).
As per the agreement, the metro company can now raise funds through development on the land acquired from the local civic body, the government and the semi-government organisations.
The Cabinet also put up the condition that the project cost would be met from the escrow accounts of Pune and Nagpur special purpose vehicle, if the state government is burdened with the funds for projects.
It also clarified that the Pune Metro as well as the Nagpur Metro will have to take the state government’s permission on the expenses to be incurred for part of the project currently not featuring in the detailed project report.
The Pune Metro was approved by the union government on December 23, while the Nagpur Metro was approved on January 30, 2014.