Bus Rapid Transit (BRT) has emerged as a preferred mode of public transport in various countries all over the world for its cost effectiveness in construction as well as in operation and maintenance. The rapid transit feature of BRT is seen as a solution to many traffic problems in these countries. However, in developing countries like India, the right -of-way for most of the roads is restricted and traffic is heterogeneous in nature. Provision of BRT in existing right -of-way reduces the capacity available for other motorized traffic. As the buses travel with a certain frequency on dedicated bus- ways, the dedicated corridor remains unused for most of the period when other traffic on motorized vehicle (MV) lanes suffers from congestion. The problem gets severe at intersections. However, if buses are operated in mixed traffic it is no more rapid transit. Hence, a solution is required to address this problem and optimize the performance of traffic as a whole. This paper presents the effect if dedicated bus-ways end at a reasonable distance before the stop line at a busy signalized at-grade intersection, and bus lanes (beyond that) are made available to all the motorized vehicular traffic (heterogeneous traffic) at intersection. The performance evaluation is done in terms of average queue length, maximum queue length, average delay time per vehicle, vehicle throughput, average speed in network and emission of Carbon monoxide CO, mono-nitrogen oxides NOx and Volatile organic compounds (VOC). It is observed that availability of bus lanes to other motorized traffic for a reasonable distance before intersection considerably reduces the average queue length, maximum queue length, average delay time per vehicle and emission per vehicle, while there is an increase in vehicle throughput and average speed of all the vehicles in the network. Thus it results in reduction of congestion and performance enhancement of at-grade intersections and network. Results of investigation are relevant in international context. VISSIM, a microscopic simulation tool, is used to model the heterogeneous traffic and public transit lines under constraints of roadway geometry, vehicle characteristics, driving behaviour and traffic controls. The effect is investigated with different random seeds to obtain reasonable results for analysis.