Are we creating outcomes similar to power sector by proliferating metro rail across cities in India?
- Vikalpa: The Journal for Decision Makers
- 46(1), Jan-Mar, 2021: p.7-12
Metro rails mitigate problems of pollution and congestion in crowded Indian cities and are therefore a priority of the government. However, they are also very expensive to build and operate, making their operations loss-making. With increasing proliferation of metro rails and their continuous losses, there would be a need for repeated bailout packages for the metro rail sector in India, similar to the case of the power sector. There are a number of measures that can be taken to mitigate this outcome as apparent from the example of Hong Kong Metro. – Reproduced
Infrastructure, Indian infrastructure, Metro rail, Cost recovery in infrastructure, Value capture finance