Strengthen local transport system before opting for Metro projects: Centre to states

In a major setback to states planning to introduce Metro Rail services for their cities, the Ministry of Urban Development, in its new Metro Rail Policy, has mooted strengthening of existing public transport systems in states rather than going for new metro projects.

According to the draft of new Metro Rail Policy, getting approval for new metro projects would be very tough as several new norms have been included into it that restrict states from getting new proposals for metro rain cleared by the Centre.

According to the experts, the draft policy is aimed at motivating states to adopt Public Private Partnership (PPP) for resurrecting public transport systems rather than dependent on the Centre for funds as the roll out of GST would help states in getting more funds than the Centre.

According to the policy, the states, prior to submission of proposal for new Metro, have to justify with their valid submissions that Metro could be the only mode of public transport in particular area. The rationale behind introduction of such "stringent" clauses in the draft policy is to encourage states to strengthen their existing public transport system rather than going for metro projects.

According to a senior ministry official, the final draft has been sent to states for their comments. "It's true that every state wants metro rail as it has become a convenient mode of public transport system. The expenditure incurred on establishing metro lines is huge and its design cannot be changed. The objective is to motivate states to adopt other viable modes of public transport such as BRTS, Light Metro Rail, tram-train services, sub-urban train services, etc," the official said.

In the draft policy, the states have been mandated to submit the proposal giving the details of alternate and financially viable transport plans for their areas. The proposals having lesser financial burden on the exchequer would be given priority.

"After the success of Delhi Metro, every state wants metro rail services in their states, which is not possible as there are several cities where operation of Metro is not economically viable. If the Centre starts giving funds to every state only for metro, the department would be left with no fund for other developmental schemes," the official said, adding, "That's the main reason for tightening the laws. Also states wanting to run metro without Centre's support would be granted permission for it."

Centre spends funds to the tune of Rs 200 to Rs on Metro projects.There are 40 new Metro rail projects coming which would cost the exchequer from Rs 5,000 crore to Rs 25,000 crore.If Centre clears all proposals, it would be under deep financial stress.