Smart Metros, Smarter Cities: Transforming India's Urban Future

From securing funding to navigating complex construction hurdles, India’s metro projects are fraught with challenges. From financing hurdles to intricate planning and cutting-edge innovations, here's a deeper look at the role of the metro in shaping India’s urban transport landscape.

The Promise of Smart Metro Systems: Efficiency, Sustainability, and Connectivity

India's metros are poised to transform urban mobility, offering efficiency, sustainability, and connectivity. While metro projects show immense potential, they also face challenges that need addressing.

Metros tackle key urban issues, especially traffic congestion. Cities like Delhi, Mumbai, and Bangalore are notorious for gridlock. Peak-hour travel speeds within cities are expected to drop from 26–17 kmph to 8–6 kmph.

Meanwhile, increasing traffic congestion is further degrading air quality in urban areas. Delhi Metro, for example, now carries 50 lakh commuters daily and has taken significant steps to reduce its carbon footprint—earning the world’s first UN carbon credits for cutting GHG (greenhouse gases) emissions by 6.3 lakh tons annually.

Delhi Metro also promotes electric vehicle use by providing charging stations at parking lots and operates a fleet of electric buses for last-mile connectivity. The city is leading the sustainability charge by launching 100 electric buses for last-mile connectivity and partnering with services like Smarte and ETO Motors for seamless travel.

It also operates electric three-wheelers, setting a benchmark for green initiatives. Meanwhile, Mumbai Metro, despite its potential, is yet to reduce GHG emissions, though higher ridership could improve its performance.

Beyond environmental benefits, metros are economic engines. By connecting key business and residential hubs, they enhance accessibility, reduce commute times, and boost productivity. All of the 50 largest metropolitan areas by GDP are supported by urban rail systems, with 76% now having metros, which boost innovation and urban economies, and reduce congestion.

Metros do more than improve accessibility—they drive agglomeration, boosting productivity, job access, and quality of life. Their connectivity fuels economic growth, making the investment worthwhile.

The Pitfalls: Implementation Hurdles

While the promise of metro systems is undeniable, the implementation of such projects in Indian cities often encounters roadblocks that hinder their effectiveness.

High Costs and Delays

One of the most pressing issues with metro projects in India is their cost. The construction of metro lines is an expensive endeavour, with the Delhi Metro (for example) costing more than Rs 60,000 crore (about US$ 8 billion).

The funds required often lead to heavy financial burdens on state governments, and when such projects experience delays, these costs spiral even further.

The Chennai Metro, for instance, has faced repeated delays, pushing the project cost far beyond initial estimates. Some pre-covid statistics below highlight the losses faced by major metros of India.

London, Hong Kong, and Singapore thrive with integrated transport authorities that cross-subsidise services through congestion fees, parking charges, and property development. While Indian cities have long planned Unified Metropolitan Transport Authorities (UMTAs) to integrate services and finances, they’re yet to see success.

Land Acquisition and Displacement

Land acquisition is another significant challenge. Acquiring land for metro construction is a contentious issue, particularly in densely populated areas. The disruption to local communities, especially in informal settlements or densely built-up areas, can lead to displacement, loss of livelihoods, and significant social opposition.

In Bengaluru, the metro's expansion has faced resistance from local businesses and communities, who feel neglected or harmed by the construction process. In Mumbai, the MMRDA is facing land acquisition challenges that are delaying the crucial expansion of Metro 6 in Mumbai, slowing progress of the city's vital public transport improvements.

Limited Coverage and Accessibility

While metro networks in large cities like Delhi and Mumbai are expansive, many cities still have limited metro connectivity. Bengaluru’s Namma Metro, while growing, only covers a small fraction of the city's vast expanse.

The metro's limited reach often leads to people relying on other modes of transport, such as buses or private vehicles, to get to stations, defeating the purpose of a truly integrated transport system.

Additionally, connectivity to key areas such as airports and suburban regions remains poor.

Poor coverage And Integration With Other Public Transport

The global leaders in metro networks such as London, Singapore and Hong Kong have extensive coverage of their metro systems relative to the population of the city. Additionally, these metros have a good integrated transport network as can be seen with Transport for London (TFL).

In the case of India, Delhi is still far off from the next best global performer Hong Kong and this gap can potentially be made up through an integrated transport system or a single window authority like TFL.

The success of metro systems depends on their ability to be seamlessly integrated with buses, taxis, and auto-rickshaws. In several cities, however, this integration remains incomplete. A 2016 WRI survey found that 70 per cent of potential Bangalore Metro users avoided the service due to poor first- and last-mile connectivity, a common issue across Indian cities.

A newer study by the Ola Mobility Institute survey highlighted ongoing dissatisfaction with public transport, with low scores for safety (2.7/5), disability access (2.6/5), and overall coverage (2.9/5).

In Delhi, while the metro is highly successful in the city centre, the suburbs remain poorly connected. CEPT University’s study on multimodal hubs, like New Delhi Railway Station, revealed a lack of non-motorised transport infrastructure and poor connectivity, leading to inefficient, inconvenient transit hubs across India. 

Thus, the absence of last-mile connectivity limits the metro’s full potential, as commuters still face logistical hurdles when attempting to complete their journey.

Ridership Patterns

Indian metro systems have similar ridership per km to global peers, but their actual ridership is much lower than projected. For example, Delhi Metro reached just 38 per cent of its projected ridership by FY18, but this rose to 79 per cent by FY20 due to changes in counting methodology.

Future urban rail systems should focus on reducing capital costs by evaluating network needs based on urbanby development and mobility by exploring lower-cost options like Metrolite and Light Rail systems. 

Accurate ridership estimates are key for assessing a metro's role in city mobility and financial planning. Comparisons with global peers show that current metro systems' ridership per km matches some of the busiest worldwide.

However, due to poor planning and route rationalisation, Delhi Metro carries about 14,000 people per km, on the blue and yellow lines—which accounts for just 30 per cent of the network while accounting for 60 per cent of ridership.

To optimise future urban rail systems, accurate ridership projections, cost-effective planning, and efficient route rationalisation are essential. With the right strategies, metros can maximise their impact on city mobility and financial sustainability.

Financial Sustainability

While metro systems offer a vital service, many of these struggle to achieve financial sustainability. The high costs of construction, operations, and maintenance often make it difficult for metro services to break even.

Fares, especially in cities like Delhi, are kept relatively low to ensure accessibility, but this means that governments need to constantly subsidise metro operations. Over time, this could become a long-term financial burden on both the central and state governments. 

The trends in the graphic below serve as a valuable benchmark for cities looking to expand their networks and for new cities starting rail projects.

With Mumbai Metro currently expanding its operational length to 59 km, it will be interesting to assess the medium- to long-term cost-benefits of an unprecedented mega project in India’s urban planning history.

Strategies For Sustainable Metro Growth

Boosting Ridership:

Success hinges on integrating metros with other public transport for seamless first- and last-mile connectivity. Operators, authorities, and stakeholders must collaborate for this integration.

Accurate Ridership Estimates:

Realistic ridership projections are key to assessing the metro’s role in city mobility and financial planning. Compared with global peers, India’s metro systems show similar ridership per km to some of the busiest worldwide, offering valuable benchmarks for future networks.

Soaring Costs:

Metro system costs have risen, with recent projects exceeding Rs 300 crore per km. Factors like network mix (elevated/underground) and land acquisition significantly impact costs.

Revenue Models:

Indian metros are heavily reliant on farebox revenue. Delhi Metro leads by increasing non-farebox income through land value capture, a strategy other cities can adopt for long-term financial sustainability.

Future Financial Strategy:

As metro networks expand, existing losses could worsen without a strategic financial approach. Future systems should minimise costs and prioritise lower-cost alternatives like Metrolite and Light Rail.

Revenue Boosting Strategies:

• Enhance farebox revenue through dynamic pricing and targeted discounts.
• Increase non-farebox income via land value capture, advertising, and consulting services.
• Explore market-based instruments to encourage mass transport use. Some examples are taxation on vehicle ownership, subsidised transit passes, the last-mile connectivity enhancement such as bike parking at metro stations, and so on.

Integrated Governance for Long-Term Success:

Cities like London, Singapore, and Hong Kong fund their metro systems within integrated transport authorities, cross-subsidising through non-fare revenues. A well-functioning unified transport authority thereby becomes crucial for the sustainability of an urban rail system.

The Way Forward: Building An Integrated & Sustainable Future

Metro systems undeniably have a crucial role to play in India's urban future, but they must be implemented with a comprehensive, multi-dimensional approach. To overcome the challenges outlined above, the following measures could help improve the success of metro projects.

As India embarks on the ambitious task of building metro systems across cities, the future lies in integration. The metros must become part of an overarching multimodal transport network, where buses, metros, e-rickshaws, and bicycles seamlessly work together to create a robust urban mobility ecosystem.

In addition, collaboration between central and state governments will be essential to fast-track projects. Streamlining regulatory processes, improving land acquisition procedures, and creating more flexible financing mechanisms will be key to reducing delays and ensuring metro projects are delivered on time and within budget.

Finally, metros in India must become part of the larger smart city movement. They should not only be seen as transportation networks but also as integral components of the data-driven, energy-efficient, and connected cities that India aspires to build.

Metro systems hold great promise for India’s urban future. They can improve mobility, reduce pollution, and spur economic growth. However, the challenges they face—high costs, land acquisition issues, limited coverage, and sustainability concerns—need to be addressed with careful planning and holistic strategies.

If executed well, metro projects could be a game-changer, transforming India’s cities into modern, sustainable, and connected urban spaces for future generations.