The Haryana government granted exemption from value added tax (VAT) to all goods sold to the Delhi Metro Rail Corporation (DMRC) for the construction of the metro rail extension from Delhi's border to Gurgaon.
The DMRC would have to give a certificate to the state government stating all VAT-exempted goods were used on the project.
A sum of Rs 1.67 billion has been earmarked for the project for 2006-07. The Haryana government and its agencies would fund it.
The state government and DMRC would sign an agreement in this regard soon.