Bullish on India: How Metro rail has transformed the way urban India commutes

Currently, India boasts of a total operational metro network of 845 km, across 15 cities. Further, around 462 km is under construction, 372 km has been approved, and 1,056 km has been proposed. If things work to plan, India will have a total metro network spanning around 2,750 km in the next few years.

"We've introduced a good system in the country. A positive culture has emerged, especially in the way people travel and respect the transport system. It has marked the beginning of a new era," E Sreedharan, known as India's Metro man, told Moneycontrol.

Sreedharan played a key role in designing the Kolkata Metro, executed the Delhi Metro, and was also involved in metro projects in cities like Bengaluru, Kochi, Lucknow, and Jaipur.

"However, I'm a bit disappointed that we are not progressing swiftly with the expansion of the metro network. India has 40 cities with populations exceeding 1 million, and all these cities should have had around 5,000 km of metro network by now, but progress is slow. China builds 300 km every year in so many cities, whereas India is not even achieving 24-25 km per year," said Sreedharan.

Parliamentary panel disappointed

A Parliament standing committee on the Union Ministry of Housing and Urban Affairs regarding 'Implementation of Metro Rail Projects' in 2022 said: "It is disheartening for the committee to observe that barring Delhi and Mumbai Line 1, most of the operational Metro systems, Bengaluru, Hyderabad, Lucknow, Chennai, Kolkata, and Kochi, have low ridership."

"The poor performance of the majority of the metro rail networks in terms of carrying enough passengers to break even after 6-7 years of continuous operations shows that (i) there are faulty DPRs (detailed project report), (ii) inadequate planning for first and last mile connectivity, (iii) insufficient provision of parking at metro rail stations, and (iv) a need for increasing the catchment area," it observed.

The Metro Rail Guy, an anonymous blogger who tracks metro rail projects in the country, told Moneycontrol: "With 15 operational systems and seven on the way, we must understand that the metro is a transport solution, not a traffic solution. For traffic, we need a series of rigorous measures that our administrators are currently unable to conceive and execute. For inspiration, we can simply look at cities in Asia with similar population densities," he said.

Metro Policy: What does it say

According to the Metro Rail Policy of 2017, the central government provides financial assistance for metro proposals in cities or urban agglomerates based on the proposal's feasibility and availability of resources.

Metro projects are capital-intensive. Records from the Union Ministry of Housing and Urban Affairs show that the budget allocated for metro projects was Rs 19,152 crore in 2019-20, Rs 20,000 crore in 2020-21, Rs 23,500 crore in 2021-22, and Rs 23,875 crore in 2022-23.

Most of the metro rail projects have been financed by the central government in partnership with the state governments, while some have been funded either by the state governments on their own or in collaboration with private partners.

The policy also promotes multi-modal integration, last-mile connectivity, public-private partnerships, land value capture, and transit-oriented development to enhance financial viability, among other aspects. It mandates that metro rail projects are required to have at least a 14 percent Economic Rate of Return (ERR).

Sreedharan said the government has added several conditions to the Metro Policy. "Any project now takes 2-3 years for approval. All cities are awaiting approvals, and even when approvals are granted, there are many conditions attached. There should be a proper push for expanding the metro" he said.

Sreedharan argued that there is a distorted perception of the metro, assuming it should be a profit-making service.

"Fares are now kept high to make it financially profitable. Metro fares should not be over 1.5 times the bus fare, but they are now 3-4 times higher. When the Delhi Metro started, there were no taxes or duties; now there is an 18 percent GST and other taxes/duties for the metro . The foreign loan component should not exceed 20-25 percent of the total project cost, but it is now around 50 percent of the cost. The government isn't investing much money in the metro, and these are incorrect approaches that I disagree with," he said.

Sreedharan emphasised that the metro is essentially a social service. "For instance, we don't build hospitals to make a profit. We need to encourage more people to travel by metro to reduce road congestion and pollution in our cities. The government expects metro operators to cover everything, including civil work, electrification, signalling system, rolling stock, and operations. In other countries, 80-90 percent of the project cost is borne by the government. Due to inadequate financial support from the government, metro operators struggle to expand and are also forced to maintain high fares," he said.

Are the rich using public transport?

Urban planners and mobility experts often cite the words of Colombia's current president, Gustavo Petro, that a developed country is not a place where the poor have cars, it is where the rich use public transport. In a country like India, public transport is often looked down upon and considered a mode of transit for the less affluent.

Overcrowded, rickety buses, complaints of breakdowns, delays, and no cashless ticketing system can paint a grim picture of public transport. However, the metro has transformed the quality of public commutes: air-conditioned coaches, automated fare collection systems, well-maintained stations, CCTV cameras, and punctual services. There are no separate classes in the metro.

Urban roads in India are now congested with private vehicles, but the metro offers a safe, reliable, fast, affordable, and comfortable commuting option that attracts even the wealthy. Indian roads are often riddled with potholes and encroachments, and the surge in vehicles has slowed road traffic down. In such a scenario, it’s the metro rail that brings much-needed respite. It has reduced travel time, minimised pollution, and has managed to draw at least some private vehicle owners who wish to avoid the stress of driving on congested roads. With a surge in population and vehicle numbers, the metro is unlikely to eliminate congestion. However, it will provide an alternative option for citizens to travel faster, more comfortably, and in an environment-friendly way.

Additionally, the metro offers features like CCTV surveillance and an emergency response system, ensuring the safety of women passengers. However, there are also allegations of politicians interfering in the mapping of metro routes to benefit their real-estate projects, disregarding the genuine needs of passengers. Hurdles caused by land acquisition, worker shortage, legal disputes, and poor coordination among multiple governing bodies often contribute to delays in completion and drive-up costs of Metro rail projects.

How does the future look like?

New transit modes like Regional Rapid Transit System (RapidX), MetroLite, MetroNeo, and Water Metro will also be a boost to urban commuting. The Centre's 'Make-in-India initiative’ has now reduced the reliance on foreign vendors, which previously held a monopoly in technology-based systems, especially for rolling stock, signalling, telecom systems, electrical and electromechanical components, and civil engineering structures. These measures could bring down the costs of metro rail projects in the country.