The cabinet has approved in principle the draft of Metro Rail Act, 2014 with guidelines for who will operate and regulate this project.
Prime Minister Sheikh Hasina chaired the regular cabinet meeting that took place on Monday.
Cabinet Secretary M Musharraf Hossain Bhuiyan briefed the media afterward.
The metro rail across Dhaka city will have sixteen stations connecting Uttara and Motijheel through Pallabi, Mirpur, the cabinet secretary said.
The draft will now be sent to the law ministry for vetting and will again have the final approval of the cabinet before making its passage through the parliament to be formulated as law.
The cabinet also approved two other laws regarding the regulation of vehicle usage of government employees and the Investment Corporation of Bangladesh.
These two laws were previously in effect as military ordinance, what was annulled immediately after the concerned regime was declared illegal.