As the Delhi Metro gears up for its Phase-III, the planning commission is of the view that the Delhi development authority (DDA) should fund the ambitious project along with the city and central governments to reduce their financial burden.

Besides, the planning body is also of the view that the proportion of investment for the Phase-III, that envisages to connect another 65 km of the capital through Metro, should be increased by the two governments, which jointly own the Delhi Metro Rail Corporation (DMRC).

Delhi government has been saying that DDA should pump in money in the Metro's Phase-III project, contending that it has huge cash reserves and the move would benefit the new age transport system.

"The planning commission has proposed to increase the debt equity ratio for DMRC's third phase to 50:50 per cent compared to 70:30 per cent during the first two phases," sources in the commission said.

Currently, 70 per cent of the project cost is met through loans from agencies like Japan International Cooperation Agency and other banks and the rest 30 per cent is equally shared by the two governments.

Now, the commission wants the two governments share to be increased from 15 per cent to 25 per cent each. In this regard, the commission has suggested that the DDA can be asked to contribute so that the burden on two governments could be eased to an extent.

The remaining 50 per cent of the cost may be raised through soft loans from agencies like JICA and others.

The source said the commission is of the view that besides getting direct return on investments, the DDA would get its properties appreciated with the development of the Metro corridors.

The planning commission has constituted a committee headed by its Member B K Chaturvedi to go into the aspects of the expansion of the Metro network in the capital.

The committee would have on its board another member of the panel Arun Maira, principal advisor L P Sonker and representatives from DMRC, Urban Development Ministry and the Delhi Government.

The expert group will be meeting soon to work out the modalities of the project and the Commission would convey its view to officials from the ministry, Delhi government and the DMRC.

The DDA functions under the urban development ministry.

Delhi Metro is currently preparing the detailed project report of the Phase-III as per the suggestions made by the Delhi Government like covering the outer and inner ring road after it approved the project in October last year.