AMN /
Union Cabinet today approved a new metro rail policy for expanding the metro network across various cities in the country. Briefing reporters after the meeting, Finance Minister Arun Jaitley said the policy was prepared in consultation with states and is intended to end ad hoc arrangement for expansion of metro rail network in the country. He said, right now 370 kilometer metro network is under operation in seven cities while 537 kilometer network is under construction in 12 cities.
Mr. Jaitley said the proposal for another 600 kilometer is under consideration of the government. The policy seeks to enable realisation of growing metro rail aspirations of a large number of cities in a responsible manner.
It will open a big window for private investments across a range of metro operations. It makes Public Private Partnership component mandatory for availing central assistance for new metro projects. It seeks to provide necessary last mile connectivity through feeder services, and Non Motorised Transport infrastructure.
The new metro rail policy mandates setting up of Urban Metropolitan Transport Authority, and empowers states to make rules and regulations and set up permanent Fare Fixation Authority for timely revision of fares. The Policy makes a shift from the present Financial Internal Rate of Return of 8 percent to Economic Internal Rate of Return of 14 percent for approving metro projects, in line with global practices.