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Tribune News Service
New Delhi, August 16
The government today approved its Metro Rail Policy 2017 focusing on compact urban development, cost reduction and multi-modal integration.
The policy, approved at the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi here, would open a big window for private investments in the sector. It makes the public-private partnership component mandatory for availing of central assistance for new Metro projects.
Finance Minister Arun Jaitley said the policy was prepared in consultation with states and was intended to end ad-hoc arrangement for the expansion of Metro network in the country.
He said, at present, the 370-km Metro network is under operation in seven cities while 537-km network is under construction in 12 cities. The proposal for another 600 km is under consideration.
The policy mandates setting up of the Urban Metropolitan Transport Authority and empowers states to make rules and regulations and set up permanent the Fare Fixation Authority for timely revision of fares. It makes a shift from the present Financial Internal Rate of Return of 8 per cent to Economic Internal Rate of Return of 14 per cent for approving Metro projects, in line with global practices.
“Private participation either for the complete provision of Metro rail or for some unbundled components (like automatic-fare collection, operation and maintenance of services etc) will form an essential requirement for all Metro projects seeking central financial assistance,” says the policy.
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