New Delhi Highlighting its inability to support increasing number of metro projects, the Centre has asked state governments to follow the models of Karnataka and Delhi for financing capital-intensive Metro rail projects by levying cess on residential and commercial developments, and increasing house tax. It has also urged them to set up state-level urban transport funds with such levies to finance the projects.

The Centre says its unable to support the increasing number of metro systems through the Budget and therefore wants the states to develop their own funding sources to part-finance such capital-intensive systems.