The central government has approved the new Metro Rail Policy. The policy has mandated the use of private investment through public-private partnership (PPP) models for availing of central assistance for new metro projects. It has also mandated the evaluation of alternative modes of mass transit such as bus rapid transit systems, light rail transit, tramways, etc., to assess whether a proposed metro project is the right way to meet the urban transportation needs of a city. It has also stipulated a shift from the present financial internal rate of return of 8 per cent to an economic internal rate of return of 14 per cent to assess the financial viability of projects.
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