New Delhi, Jan 30 (IANS): The union cabinet Thursday gave its approval to the second phase of Bangalore Metro Rail Project to improve public transport in the city.

According to an official release, the cost of the project was estimated to be Rs.26,405.14 crore at 2011-12 price levels "with price escalation of five percent per annum".

The project is scheduled to be completed in five years from the date of commencement of work.

"The cabinet has approved the Bangalore Metro Rail Project Phase-2. This project will improve the public transport system in the city of Bangalore and provide the much needed additional public transport infrastructure for the city," the release said.

Of the total cost, the central government will provide Rs.5,281 crore and Karnataka government's share will be Rs.8,983 crore.

Karnataka's share includes a grant of Rs.1,689.90 crore while the balance amount of Rs.12,141.14 crore will be raised through debt.

The project will be executed by Bangalore Metro Rail Corporation Ltd - the existing Special Purpose Vehicle (SPV) of central and state governments having 50:50 equity from each, the release said.

Projecting frequency of travel by the commuters on various sections, it said that in the east-west line, the daily ridership would be 4.27 lakh in 2016 and 10.07 lakh in 2014. Similarly, in the north-south line, the daily readership was estimated at 5.51 lakh in 2016 and 10.93 lakh in 2014.