Metro Rail Policy, 2017

The Metro Rail Policy, 2017 provides a national framework for planning, appraising, financing and implementing metro rail projects in Indian cities. Its central objective is to create sustainable urban mobility systems that are integrated with wider transport and land-use planning, rather than treating metro construction as an isolated engineering project.

Integrated and need-based mobility planning

The policy seeks to ensure that a metro is selected only after examining urban mobility needs and available public transport alternatives.

• Cities must prepare a Comprehensive Mobility Plan and undertake an Alternatives Analysis to identify the most suitable mass-transit option.
• Metro planning should integrate land use, bus and intermediate public transport, feeder services, pedestrian facilities and non-motorised transport.
• Projects should pursue Transit-Oriented Development, encouraging compact, mixed-use development around transit corridors and stations.

Financial sustainability and efficient funding

The policy aims to improve project viability while using public resources prudently and mobilising non-fare revenue.

• States are encouraged to use value capture finance, commercial development and other innovative financing methods to recover part of the benefits created by metro investment.
• Central assistance is linked to credible project appraisal, institutional readiness and commitment by state and urban authorities.
• Private participation is mandatory for metro projects seeking central financial assistance, either for the entire project or for unbundled components such as operations and maintenance.

Institutional capacity and wider public benefits

The policy promotes coordinated metropolitan transport governance and evaluates projects by their broader social, economic and environmental contribution.

• States are expected to establish a Unified Metropolitan Transport Authority for coordinated planning and management of urban transport.
• Metro systems are intended to reduce congestion, travel time, accidents, energy use and urban pollution while improving accessibility and quality of life.
• The framework encourages standardisation, capacity building and indigenisation to reduce costs and improve implementation.