THE CONTEXT: India is on the verge of a transportation revolution, with a projected ₹3 trillion investment in metro rail projects set to transform urban mobility and unlock significant economic potential. The government’s push for Transit Oriented Development (TOD) aims to integrate land use and transport, enhancing job accessibility and promoting sustainable growth.
INDIA’S METRO RAIL INVESTMENT AND ECONOMIC POTENTIAL
- ₹3 Trillion Projected Expenditure: Between 2022 and 2027, India plans to spend ₹3 trillion on approved metro rail projects, marking a significant investment in urban transportation infrastructure.
- Job Creation: The investment in metro rail projects is expected to generate thousands of jobs, contributing significantly to employment growth in urban areas.
- Economic Returns: Studies suggest that the economic returns from these investments could be 5-7 times greater than the initial outlay, underscoring the potential for substantial economic benefits.
GOVERNMENT INITIATIVES
National Transit Oriented Development (TOD) Policy (2017)
- Objective: The TOD policy aims to integrate land use and transport planning to promote sustainable urban growth. It encourages compact, mixed-use development around transit stations to reduce travel distances and enhance accessibility.
- Implementation: The policy supports the development of pedestrian-friendly environments and non-motorized transport options, such as walking and cycling paths, to improve last-mile connectivity.
Metro Rail Policy (2017)
- Public-Private Partnership (PPP): The policy mandates PPP involvement for metro projects seeking central assistance, opening opportunities for private investment in metro operations.
- Comprehensive Mobility Plans (CMP): States must develop CMPs to ensure integrated urban transport planning, including multi-modal integration and last-mile connectivity.
- Transit Oriented Development (TOD): The policy mandates TOD to promote dense urban development along metro corridors, aiming to reduce travel distances and enhance land use efficiency.
- Funding Models: Offers three options for central assistance—PPP with viability gap funding, a lump sum grant covering 10% of project costs, or a 50-50 equity sharing model between central and state governments.
CHALLENGES IN IMPROVING JOB ACCESSIBILITY:
- Economic Centers Developing in Suburban and Peri-Urban Areas: Economic growth is increasingly occurring outside traditional urban centers, leading to the expansion of job opportunities in suburban and peri-urban areas. This decentralization can create a mismatch between where people live and where they work, making it difficult for workers to access jobs efficiently.
- Public Transport Struggling to Keep Up with Outward Sprawl: As cities expand, public transportation systems often fail to extend their reach adequately into newly developed areas. This lack of infrastructure can limit access to employment opportunities for those living in these regions, as they may not have reliable or convenient transit options.
- Longer Commutes Leading to Congestion and Pollution: The distance between residential areas and economic centers often results in longer commutes for workers. Increased reliance on private vehicles contributes to traffic congestion, higher levels of pollution, and greater time spent traveling, all of which can negatively impact productivity and quality of life.
TRANSIT ORIENTED DEVELOPMENT (TOD) BENEFITS:
Promotes Compact, Mixed-Use Development
- Efficient Land Use: TOD emphasizes the creation of compact, high-density, walkable, mixed-use communities centered around public transportation systems.
- Economic Activity: Mixed-use land utilization enhances economic activity by diversifying the types of goods and services accessible, benefiting both residents and the local economy.
- Resource Management: By integrating residential, business, and leisure spaces within walking distance of public transport, TOD allows for more efficient resource management and reduces energy costs associated with car-oriented development.
Encourages Sustainable Transport Modes
- Reduced Car Dependency: TOD prioritizes sustainable transport modes like walking, cycling, and mass transit, reducing reliance on carbon-emitting vehicles.
- Pedestrian-Friendly Infrastructure: Building pedestrian-friendly infrastructure lowers the need for car parking zones and reduces the urban heat island effect.
- Public Transit Integration: Improved access to public transportation results in more efficient, reliable, and affordable transportation options.
Decouples Density from Congestion
- Efficient Land Use: By promoting compact development patterns around transportation nodes, TOD helps reduce urban sprawl and congestion.
- Public Transit Ridership: Clustering job growth near transit increases transit ridership more effectively than dispersed job growth, reducing congestion.
- Integrated Planning: TOD integrates land use with transportation planning to minimize congestion while supporting economic growth.
Supports Low-Carbon Growth
- Reduced Emissions: By promoting sustainable practices and reducing automobile reliance, TOD helps curb greenhouse gas emissions and combat climate change.
- Green Space Utilization: Incorporating green spaces within TOD reduces carbon footprints and enhances environmental sustainability.
- Low-Carbon Growth Ambitions: TOD aligns with low-carbon growth ambitions by decoupling economic growth from resource use and emissions.
BENGALURU CASE STUDY
- 2 Million Registered Enterprises: The Bengaluru Metropolitan Area (BMA) hosts approximately 0.2 million registered enterprises, highlighting the city’s robust economic activity.
- 6 Million Workers Employed: These enterprises employ around 4.6 million workers, indicating a significant workforce presence in the region.
- Service Sector Dominance: The service sector is the major contributor to employment, with large enterprises (100+ employees) making up only 2% of all enterprises but accounting for 60% of all jobs.
METRO IMPACT ON NETWORK CONNECTIVITY
- 28% of Jobs Within 500m: Once the metro network is completed, 28% of jobs in the BMA will be within 500 meters of a metro station.
- 59% of Jobs Within 1km: Approximately 59% of jobs will be located within 1 kilometer of a metro station.
- 85% of Jobs Within 2km: A total of 85% of jobs will be within 2 kilometers of a metro station, enhancing accessibility for a large portion of the workforce.
CHALLENGES
- Limited Land Availability: Inner-city areas face constraints in land availability, limiting opportunities for large-scale commercial development.
- Unfavorable Development Regulations: Existing regulations regarding access road widths, setbacks, and parking norms hinder redevelopment efforts.
- Inadequate Infrastructure: Infrastructure levels are insufficient to support higher-density developments near metro stations.
- Higher Property Prices Near Metro Stations: Increased property values near metro stations can deter smaller businesses from establishing themselves in these areas.
THE WAY FORWARD:
- Set targets for jobs near transit: Establish aspirational goals to increase job density around transit stations, like high-functioning global cities like Hong Kong.
- Identify areas for renewal and densification: Focus on areas served by transit where job densities can be increased through urban renewal and densification, balancing market demand with environmental and community goals.
- Implement location-efficient incentives: Encourage businesses to locate near transit stations through additional development rights or fee/tax subsidies, particularly in economically depressed areas.
- Form partnerships for catalytic developments: Collaborate with the public sector to enable developments that enhance amenities, public spaces, and last-mile connectivity.
THE CONCLUSION:
To ensure globally competitive metropolitan cities, India must prioritize job densities near transit through strategic planning and policy frameworks. Collaborative efforts between public and private sectors can drive inclusive, low-carbon, and connected urban development, maximizing the benefits of metro rail investments.
UPSC PAST YEAR QUESTION:
Q. National urban transport policy emphasizes moving people instead of moving vehicles. Discuss critically the success of various strategies of the government in this regard. 2014
MAINS PRACTICE QUESTION:
Q. Discuss the role of Transit Oriented Development (TOD) in addressing urban challenges in Indian cities. Evaluate the effectiveness of the National TOD Policy in promoting sustainable urban growth and enhancing public transportation systems.
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