Why the new Metro Rail policy will work

The cost of building infra projects like the metro is to be calculated on an economic rate of return

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Inside view of a train that arrives at Jama Masjid metro station during the press preview in New Delhi on Friday ahead of the inauguration of Metro's Heritage Line. The heritage line between ITO and Kashmere Gate, will be thrown open on Sunday

Subhomoy Bhattacharjee New Delhi

Last Updated : Aug 17 2017 | 4:50 PM IST

Delhi Metro recently raised the price of its ticket by up to 50 per cent for an average ride of 15 to 24 kilometres effectively taking the fare out reach for poorer income groups. The rationale offered by the Corporation is that it is necessary to keep it profitable. In the process, the benefit of the Metro to provide long-distance travel to low-income groups has gone for a toss. It is an example of tunnel-vision based accounting that the financial rate of return imposes on broad spectrum infrastructure projects.

The alternative floated by the central government on Wednesday requiring