There is urgent need in India for mass transportation systems not only to reduce fuel costs but also to reduce traffic jams,' Reddy pointed out.

'The projects will be funded on a 50:50 basis with the central and state governments contributing in equal measure. We are also trying to get loans from foreign institutions,' the minister added.

The Metro service is currently available in Kolkata and New Delhi. The daily ridership in the national capital is estimated at 800,000.

Metro services in Chandigarh, Hyderabad, Kochi and Mumbai are in various stages of consideration.