Maharashtra's cabinet of ministers on Saturday cleared a proposal for the construction of an underground metro railway project for Mumbai. The project will link the city's north-south and east-west corridors. A substantial portion of the funds will come through the World Bank and other international funding agencies.

Chief Minister Sushilkumar Shinde told mediapersons: "The Rs 3,200 crore (Rs 32 billion) phase I of the project envisages an eight km underground rail network between Colaba (south Mumbai) and Mahalaxmi that will link to a via-duct elevated railway line that will connect Mahalaxmi with Mahim. The metro project, for which we have asked the Delhi Metro Rail Corporation to prepare a project report, intends to link Colaba in the southern part of Mumbai with Charkop (Kandivali) in the northern end. Similarly, from Mahim an underground line would link up to Mankhurd in the eastern corridor."

The state and Union governments will finance Rs 600 crore (Rs 6 billion) each for the project, with the remainder Rs 200 crore (Rs 2 billion) of phase I will be funded by the World Bank and other international funding agencies, Shinde said.

The state Cabinet also decided to facilitate the development of special townships through private participation from individuals, institutions and companies by amending the existing legislations.