[Economy] GSM3: New Metro Rail Policy 2017: Investment Models, PPP vs EPC, DFBOT, VGF with Model Answers in Hindi & English

1. Prologue
2. Questions
3. Why Investment Banking Ph.D is unnecessary?
4. Introduction for all questions
5. Q1: Salient Features
   1. Brainstorming
   2. Body#1: Do we need Metro rails in India?
   3. Body#2: New Metro Rail Policy salient features:
   4. Conclusion (summary type | finding type)
6. Q2: PPP vs EPC for Metro Rails
   1. Brainstorming
   2. Body#1: PPP vs EPC for Metro Trains
   3. Investment Models in new Policy 2017
   4. Conclusion (summary type | finding type)
7. Q3: Investment Models in the new metro policy
   1. Brainstorming
   2. Model#1: 50:50 JV model & its evaluation
   3. Model#2 and #3: PPP where Union gives VGF/Grant
   4. Urban transformation & Innovation
   5. Conclusion (summary type | finding type)
8. Q4 and Q5
9. Answer framework in Hindi
   1. परिचय: व्याखा / मूल
   2. नई मेट्रो रेल नीति: लोकलुभावन से ज्यादा व्यवहार्यता का रुख
   3. नई नीति: निवेश के मॉडल
   4. आलोचना/मूल्यांकन
   5. सार

Prologue

As a topic, Metro rail policy and its investment models, is more relevant for descriptive exams rather than objective (MCQ) exams. Hence I’ve put this under the ‘art of answer writing’ category, instead of the traditional ‘economy’.

• To gain maximum mileage out of this series, first study the question topic from books and web resources.
• Answer each question in 200 words in 8 minutes in blue or black pen only.
• For answer writing use unruled A4 sized papers with 1-inch margin on all sides.
• Then read the remaining article.
• The following Mock Questions is meant for UPSC General Studies Mains Paper 3’s syllabus topics: 1) Infrastructure: Energy, Ports, Roads, Airports, Railways etc.; 2) Investment models

Questions on New Metro Rail Policy

Answer the following questions in 200 words each:

1. Discuss the need for developing metro trains in India, and throw a light on the major provisions of the National Metro Rail Policy 2017.
2. Critically examine the suitability of PPP vs. EPC for the metro train projects, and enumerate the investment models proposed in the new metro train policy of India in this context.
3. Evaluate the investment models proposed in the new metro rail policy 2017 in context of urban transformation and innovation in India.
4. “For the achievement of sustainable development goals, urban mass transit projects should not be developed as transport projects but as urban transformation projects.” Elucidate with examples.
5. In a modern economy, what should be the role of union government in the development of rapid mass transport infrastructure?

Why Investment Banking Ph.D is unnecessary?

1. You can read about the new Metro Train policy’s salient features at PM Modi’s blog. Hindi Link | English Link.
2. But, there is no point in doing PhD over minute technical nitty-gritties of the investment models and policies for example :
   1. Difference between gross cost contract vs. net cost contract; or
   2. What is the difference between Financial Internal Rate of Return of 8% vs. Economic Internal Rate of Return of 14%?
   3. There is also no need to memorize trivial GK facts like minimum catchment area of 5kms etc.
3. Because:
   1. Even if you understood all those things, you’ll never have enough space or time to put it in 200 words answers. [In this article, I’ve written each answer in more than 200 words because 1) I’ve to explain the topic / rationale and 2) in real exam you won’t recollect all points, so automatically it’ll compress down to 200 words. ]
   2. From the investment model topic, UPSC not asking minute details at the mains GS3 exam. If you look at the nature of questions asked from this topic so far since the syllabus change of 2013- they mostly focus on basic understanding of the issue. This is an exam to recruit generalist civil servants, not investment bankers. Therefore, when you’re asked to ‘examine / evaluate / find merit(s)’ of a particular investment model, you’re not expected to write grand research report in the first place. Just connect the dots with your basic understanding of economics.

So, let’s begin by preparing….

Introduction for all questions

There are mainly three ways to introduce an answer:

Define	Metro Rail is a Mass Rapid Transport System (MRTS) for daily commuters. It runs on electricity, provides point to point connectivity usually confined within a given city. [This is not a research paper. You don’t have to write high flowery definition. Merely describing the characteristics of a metro rail is good enough.]
Origin	With the fast paced urbanization of India, the demand for fast public transport has been growing since last decade. OR Despite so many advancements in the railway technology, and the rising demand for fast public transportation in the congested cities, the density  of network of metro trains within India is much less than other emerging economies. The new metro policy aims to solve this conundrum with following provisions: ___.
Data	At present, India has 8 operational metro rail projects, including at Delhi, Mumbai, Kolkata, Chennai. Apart from this, a total length of 537 kms worth metro rail projects are in progress in 13 cities. To develop and expand this limited network of metro trains further, a new policy has been enacted with following provisions: [This ‘data’ type introduction is the least preferred way to open an answer because in real exam you won’t be able to recollect such figures!]

Q1: Salient Features

Q. Discuss the need for developing metro trains in India, and throw a light on the major provisions of National Metro Rail Policy 2017. (200 words)

Brainstorming

Introduction	Define | Origin | Data. [most suitable approach is ‘define or give characteristic’ of metro rails. I’ve already given in the initial part of this article.]
Body#1	We need metros for Safety, environment, innovation for export.
Body#2	New policy’s features: alt. analysis, fare revision, land acquisition, investment models.
Conclusion	Since question was “Discuss “, so we should summarize. And since SDG also calls for urban transformation, let’s link with that. But in a single exam paper, don’t link all the conclusions to SDG/DPSP. It’s looks very clichéd and coaching-tutored. [Recall that in earlier question on Minor Forest Produce, I had linked with SDG.]

Body#1: Do we need Metro rails in India?

• Roads very congested, slow, accident prone, air pollution. Metros provide faster, less polluting mode of public transport for daily commuting.
• However, metro trains are not panacea for India because they are more capital and technology intensive than ordinary public bus or local railways. They require dedicated tracks, underground tunnels and bridges. This creates new challenges of land acquisition and remodeling of existing urban road infrastructure.
• Gestation period is very long, before the investment/profit is recovered. Since, metro caters primarily to the daily transportation requirements of the urban middle class commuters, fares can’t be raised beyond a point for faster recovery.
• Since metro, at max, can cover only a few kilometers or few blocks of a city, it can’t become a permanent substitute to local buses and local trains.
• India has to rely on technology and machinery from France, Canada, Japan et al. But, the experience and experimentation of working in such metro projects, will improve the skillset of our domestic engineers and heavy industries. So, in future, we can utilize it for project export and consultancy services to developing countries. India’s foreign trade policy 2015 has also identified this potential. Budget 2017 also mention metro train sector’s potential to generate new employment opportunities.

Body#2: New Metro Rail Policy salient features:

The new policy recognizes the aforementioned constrains and opportunities. Therefore, to ensure that metro projects are not launched in haste or mere populism or mere ribbon cutting, the policy has following preconditions before approving a metro project:

1. Alternate Analysis of BRTS, local train and other modes of transportation in terms of demand, cost: benefit and ease of implementation.
2. Separate authorities for:
   1. Timely revision of fares.
   2. Drawing up comprehensive multi-modal urban transport plans.
3. State Government will be responsible for:
   1. For Land acquisition, environment and other regulatory clearance.
   2. For advertisement, leasing of space etc. to ensure maximum non-fare revenue generation from the stations.
   3. For developing feeder lines, non-motorized pathways for pedestrians and cyclists, PH friendly infra to ensure max. utilization of metro service.
4. Financing models: private participation mandatory, and three models permitted
   1. 50:50 JV between union and state.
   2. PPP with union giving viability gap fund.
   3. PPP with union giving lumpsum amount as grant.

[In this particular question, we need to elaborate more on the investment models, UPSC gives fixed space answersheet.]

Conclusion (summary type | finding type)

• Sustainable Development Goal #9 and #11 require all nations to foster innovation in infrastructure, build safe & sustainable cities. In this context, Metro trains are among the important modes of public transportation.
• The new policy provides novel features and investment models to ensure that public sector alone doesn’t have to bear the entire financial burden in achieving these goals.**

[**Implied: commuters will bear burden with fare revisions, and private sector will also bear burden with PPP.]

Q2: PPP vs EPC for Metro Rails

Question: Critically examine the suitability of PPP vs. EPC for the metro train projects, and enumerate the investment models proposed in the new metro train policy of India in this context. (200 words)

Brainstorming

Introduction	We can’t start by defining PPP and EPC. Because in the body, again you’ll have to do that while comparing their features. Then answer will become too verbose, you’ll run out of time or space. So, better start with the ‘origin’ of the problem i.e. With the fast paced urbanization, the demand for fast public transport, such as metro rails, has been growing since last decade across the emerging economies. Primarily, there are two ways to commence such projects viz. PPP and EPC. Their merits are as following:
Body#1	To save time and space, you can draw a comparative table for PPP vs EPC, instead of writing for separate paragraphs, else lot of words will be wasted in preambling the same problems and contexts. No need for Ph.D analysis. Mere listing of the basic features and its extrapolation on Metros is sufficient.
Body#2	Just list the 3 Investment models in the new policy. Because you’ve to ‘enumerate’ only. Besides once you do comparison of EPC vs PPP, you’ll be left with little time and space to elaborate/examine this.
Conclusion	Since question is ‘critically examine A or B’ so answer’s conclusion should be ‘finding type’. Finding is simple and straightforward: While EPC more suitable for metros, but public sector alone can’t finance, so we need PPP also. Hence new policy, provides for both.

Body#1: PPP vs EPC for Metro Trains

PPP: Public Private Partnership	EPC: Engineering-procurement-construction
Arrangement between public and private sector to provide a public infrastructure or service. In practical terms, this usually means forming a special purpose vehicle company with equity participation from both state as well as private company. Then the given SPV implements the project.	Here, public sector entity retains the ownership of the project, and hires a private company / contractor to procure material, and construct the facility as per its requirements.
PPP Example: Hyderabad Metro: Design, Built, Finance, Operate and Transfer (DBFOT) model, wherein L&T owns majority shareholding in the SPV company. PSBs have given project loan, SPV issued debentures, and government of India has given viability gap fund. But commercial operations yet to begin (as of 2016). so difficult to comment on suitability and profitability of PPP for Metros, from this example.	EPC example: Delhi Metro Train: DMRC is 50:50 JV between Union and Delhi Government. This makes DMRC is state owned company and not a PPP company. Actual laying down of the tracks, tunnels and flyovers is done by private companies such as Tata projects, Jindal, Larsen and Tubro etc. Hence Delhi Metro is an example of EPC. Similar is the case with Chennai, Bengaluru, Ahmedabad metro etc.
(In Theory) Why PPP less suitable for Metros? Metro rail projects have high construction costs and long gestation period before profits begin. Cost of constructing each km of track varies significantly depending on whether it’s underground or over ground. Therefore, it’s difficult to mobilize private equity participation. [Observe the choice of words. I’m not writing in extreme terms like ‘if private company launched IPO no one will buy shares because metros are not profitable’.]	(In Theory) EPC more suitable for metros because: In the tender itself, govt / public org. can impose time and cost limits on the contracting company, and change it as per its requirements, without lengthy litigations and redtapes. Whereas in PPP company, % of shareholding restricts the decision making power of Government. Media and judicial activism, may also discourage bureaucrats from tweaking the PPP contract as per commuter traffic and fuel prices. Even past economic surveys too have pointed this out. Hence, EPC contract route is currently most preferred for implementing metro rail projects in India- as evident from Delhi, Bengaluru and elsewhere.

Investment Models in new Policy 2017

1. The new policy continues the aforementioned joint venture model with 50:50 Equity of union and the state. The resultant JV/SPV company will then run the project through EPC mode.
2. PPP between state government and private player, wherein union finance ministry will give Viability Gap Funding.
3. PPP between state government and private player, wherein union will give 10% of the project cost as lump sum grant.

Conclusion (summary type | finding type)

• While in theory, EPC seem a better choice for Metro projects, but given the budgetary constraints imposed upon both the union and state government under the FRBM act and their own social sector obligation, it’s not possible for them to start metros everywhere 50:50 JV among themselves.
• Hence, private participation has been made mandatory in all three types of projects- at execution / operation level in the new metro rail policy.

Q3: Investment Models in the new metro policy

Question: Evaluate the investment models proposed in the new metro rail policy 2017 in context of urban transformation and innovation. (200 words)

Brainstorming

Introduction	As such you can start by defining the metro train. But better start with the ‘origin’ of the problem i.e. Despite the rising demand for fast public transport in congested cities, the network of metro trains within India is much less than other emerging economies. The shortage of capital is among the primary reasons. In this regard, the new policy provides for three investment models:
Body#1	Evaluation of Model#1: 50:50 JV.
Body#2	Evaluation of Model#2 and 3: PPP with Union’s VGF/Grant. You don’t have to do Ph.D here. Just extrapolate with NPA, TBS, Financial Repression, PPP remodeling etc concepts which you should be familiar with if you’ve been following my BES17 lecture series.
Body#3	Evaluation in context of urban transformation and innovation
Conclusion	Since question is ‘evaluation’ so answer’s conclusion should be ‘finding type’. After evaluation did you find the new policy’s investment models good or bad? Since this is not a recruitment exam for columnist vacancies in theHindu, you can safely conclude a finding which is both positive and appreciative of the government! i.e. Public sector alone can’t finance, so we need private sector also. Private sector’s efficiency and innovation will help in urban transformation and job creation.

Model#1: 50:50 JV model & its evaluation

• The new policy continues the joint venture model with 50:50 equity participation between union and the state, wherein the private player will be executing / operating the metro services via EPC contract.
• Since Metro trains target a peculiar demography of commuters, they’ve to be constructed in big cities to be economically viable. Hence, most suitable candidates will be those 100 cities which are shortlisted as smart cities.
• Union, states and ULBs are collectively funding Rs.1 lakh crore for smart cities project.
• Plus, the budgetary constraints imposed upon both the union and state governments under the FRBM act, as well as their obligations for other social welfare programs.
• Given these constrains, Model#1 may remain confined only to the coastal and rich states, who have deeper treasuries to spare additional funds for 50:50 JV with union.

Model#2 and #3: PPP where Union gives VGF/Grant

• Model#2: PPP between state government and private player, wherein union finance ministry will give Viability Gap Funding (VGF).
• Model#3: PPP between state government and private player, wherein union will give 10% of the project cost as lump sum grant.
• Some economists opine that Model no. 2 and 3 are impracticable, because metro projects have longer gestation period and lower rate of return, so private investors will shy away from equity participation OR they’ll frequently demand fare hikes.
• Although policy provides for independent fare regulators, but if fare hikes are not implemented for electoral populism or PPP contracts are not revised for the fear of media & judicial activism, then private player might exit, which will further aggravate the twin balancesheet problem.
• In Model#2, If government backed Metro-SPV companies issue corporate bonds but market response is unenthusiastic, then the union finance ministry may force public sector banking and insurance companies, to invest in those bonds to reduce its own liability of providing the viability gap fund. This will further aggravate the problem of financial repression of the households.

Urban transformation & Innovation

• Some critiques opine that the union should spend money on development of ordinary railways, instead of giving it as VGF or project grant to metro trains. Because, metro trains only benefit a small demography of middle class urban commuters, while Indian railways is a lifeline of the whole nation.
• But given that Foreign Trade Policy 2015, envisages ‘project export’ as a potential forex earner, the experience, innovation and experimentation of running such metros will enable our engineers and heavy industries to export their consultancy services, technology and machinery to other developing nations in future.
• Hon’ble finance minister’s budget 2017 speech also highlighted that indigenisation of metro train hardware and software technologies will open up new job opportunities for our youth who’re otherwise flocking the lines at competitive exams, reality shows and bollywood auditions as the sole the means of gaining livelihood.
• In this context, new Policy’s emphasis on compulsory private participation in all three investment models either in form of ownership, execution or operation will foster opportunities for innovation and employment generation.
• Criticism that more money should be pumped into the public bus transport, since requires less capital and cover larger area is unfounded because the policy itself provides alternate cost:benefit analysis of other modes of public transport before approving a metro project.
• Policy also requires states/ULB/authorities to draw up comprehensive multi-modal urban transport plans, and promote compact and dense urban development and feeder lines along metro corridors to further reduce travel distances and promote efficient land usages. Indeed, this creates many opportunities for synergy with Smart cities, AMRUT, PRASAD, HRIDYA and Rurban Mission for transformation of urban India as fast and sustainable engine of growth. [Observe the “ART”: how many adjectives, connectives and schemes I’ve used to fill up the words, in case I did not know the answer. But if you know the exact answer, avoid such verbose paragraphs. Keep your points short and crisp.]

Conclusion (summary type | finding type)

• While critiques and economists opine that infrastructure projects with longer gestation period such as metro trains, are best funded by public sector, but given the aforementioned constrains, state alone can’t bear the financial burden.
• Hence, the new metro train policy provides three novel investment models to ensure that private capital and innovation is also utilized for improving the urban transport infrastructure in India.

Q4 and Q5

In the previous three answers, I’ve given sufficient building blocks. You should be able to construct these two answers on your own.

Answer framework in Hindi

Due to paucity of time, I’ll only provide a framework and key terms. Besides, the English points are simple enough for you to translate. Consider it as a practice of the qualifying compulsory English language paper in the Mains.

परिचय: व्याखा / मूल

1. Definition: मेट्रो ट्रेन बिजली से चलने वाली एसी रेल प्रणाली है, जिसका प्राथमिक उद्देश शहर के भीतर तक ही दैनिक यात्रा करने वाले नोकरीपेशा लोगो को तेज सार्वजनिक परिवहन की सेवा देना है.
2. Origin:  भीड़भाड़ वाले शहरों में सार्वजनिक परिवहन की तेजी से बढ़ती मांग के बावजूद, भारतमें मेट्रो ट्रेनों का नेटवर्क अन्य उभरती हुई अर्थव्यवस्थाओं की तुलना में बहुत कम है। इस परिपेक्ष्यमें नई मेट्रो रेल नीति निम्न प्रावधानों के साथ बनाई गयी है:

नई मेट्रो रेल नीति: लोकलुभावन से ज्यादा व्यवहार्यता का रुख

किसी भी मेट्रो प्रोजेक्ट को मंजूरी देने से पहेले निम्न बातो को सुनिश्चित किया जाएगा:

1. वैकल्पिक विश्लेष्ण की क्या मांग क्षमता, लागत और क्रियान्‍वयन सहजता की दृष्टि से मेट्रो की वजह बीआरटीएस (बस रैपिड ट्रांजिट सिस्‍टम) या क्षेत्रीय रेल ज्यादा बहेतर रहेगी?
2. नये संस्थान/ प्राधिकरण बनाए जाएंगे जो:
   • यात्री किराये में नियमित रूप से संशोधन करेंगे ताकि मेट्रो आर्थिक रूप से भी सरकार तथा निजी ओपरेटर को फायदेमंद रहे, न की केवल चुनावी लोकलुभावन का एक जरिया.
   • आवाजाही संबंधी फीडर सेवा, पैदल-साइकिल के रास्‍ता सहित की व्‍यापक योजना तैयार करेंगे, ताकि मेट्रो रेल का अधिकतम उपयोग सुनिश्चित हो सके।
3. यात्री किराये से अलावा अन्य तरीको से भी अधिकतम आमदनी हो सके इसके लिए राज्यने कदम उठाने होंगे उ.दा. मेट्रो स्टेशनों पर विज्ञापनों, केन्टीन/काफे के लिए जगह को लीज पर देने आदि के लिए जरूरी नियम कानून बनाने होंगे.
4. जमीन सम्पादन, पर्यावरण तथा अन्य सभी अनुमतिया प्राप्त करने की जिम्मेदारी राज्य सरकार की रहेगी.

नई नीति: निवेश के मॉडल

नई नीति के अनुसार, निम्न तीन विकल्‍पों में से किसी भी विकल्‍प का उपयोग करके मेट्रो परियोजनाएं शुरू कर सकते है।

1. केन्‍द्र एवं राज्‍य सरकारों के बीच 50:50 प्रतिशत आधार पर इक्विटी साझेदारी (Joint Venture) मॉडल के जरिए। जिसमे निजी क्षेत्र द्वारा संचालन और रखरखाव किया जाएगा.
2. सार्वजनिक-निजी भागीदारी (PPP) जिसमे केन्द्रीय वित्त मंत्रालय द्वारा  वायाबिलिटी गैप फंडिंग यानी कम पड़ती धनराशि का इंतजाम किया जाएगा.
3. सार्वजनिक-निजी भागीदारी (PPP) जिसमे परियोजना लागत का 10 प्रतिशत एकमुश्‍त केन्‍द्रीय सहायता (grant) के रूप में दिया जाएगा.

इन परियोजनाओ के लिए कारपोरेट बांण्‍ड जारी करने की भी छुट भी नई नीतिमें दी है.

आलोचना/मूल्यांकन

1. मेट्रो प्रोजेक्ट में भारी मात्रा में निवेश के बावजूद भी, मुनाफा दिखने से पहेले की गर्भावस्था अवधि काफी लंबी रहती है इसलिए निजी निवेशक / कम्पनिया इस क्षेत्र के प्रति उदासीन रहते है.
2. अत: मेट्रो रेल निर्माण के लिए, सार्वजनिक-निजी भागीदारी (PPP)  की अपेक्षा इंजीनियरिंग, क्रय और निर्माण (EPC) मॉडल ज्यादा उपयुक्त है. इस से पहले दिल्ही मेट्रो, बेंगलूरु मेट्रो इत्यादि भी इ.पी.सी. मॉडल से ही क्रियान्वित हुए है.
3. लेकिन हमने ये भी संज्ञान में लेना चाहिए की यात्री किराए व् मांग के हिसाब से मेट्रो ट्रेन ज्यादातर बड़े शहरों के लिए ही उपयुक्त है. और बड़े शहर में से ज्यादातर तो पहेले से ही स्मार्ट सिटी के लिए चयनित हो चुके है, जहा केंद्र, राज्य और स्थानिक संस्थान मिलकर स्मार्ट सिटी योजना के अंतर्गत रु.१ लाख करोड़ निवेश करेंगे. अब चूँकि प्रति किलोमीटर मेट्रो निर्माण का खर्च रु. ३०० करोड़ के करीब रहता है, इसलिए ये अपेक्षा रखना की केवल सरकार/सार्वजनिक संस्थानों की मालिकीमें ही मेट्रो प्रोजेक्ट भी किये जाए ये व्यावाहारिक नही है. इसी कारण, नई नीति में निजी निवेश पर भार दिया गया है.
4. किन्तु, यदी मेट्रो के लिए जारी किये गये कारपोरेट बांण्‍ड में बड़े निविशकोने उदासीनता दिखाई, तो हो सकता है क्रेंद सरकार सार्वजनिक बेंको / बिमा कम्पनीओ पर इनमे निवेश के लिए दबाव करे. इसमें मध्यमवर्गीय लोगो का वित्तीय दमन (financial repression) होने की आशंका है.
5. यात्री किराए तय करने लिए स्वतंत्र संस्था का प्रावधान है लेकिन यदि चुनावी लोकलुभावन के मद्दे नजर, किराए न बढाए गये, या फिर मिडिया व् न्यायपालिका की सक्रियता के डर से यदि पीपीपी करारनामो में सुधार न किये गये तो संभव है की निजी निवेशक/संचालक मुनाफे/भुगतान में देरी के डर से प्रोजेक्ट से अलग हो जाए. इस परिस्थितिमें द्वि-तुलन पत्र की समस्या (Twin balancesheet problem) ओर विकृत स्वरूप धारण कर सकती है.
6. मेट्रो ट्रेनसे बड़े शहरोंमें रहने वाले और उंचा किराया देने के समर्थ कुलीन वर्ग को ही फायदा होगा इसलिए सरकार ने ज्यादा झोंक बससेवा और लोकल रेल के उत्थान पर देना चाहिए, एसी मानसिकता भी गलत है. क्योकि, निजी क्षेत्र से मिलकर मेट्रो निर्माण को तेज किया जाएगे तो उससे मिले अनुभव से भविष्यमें हम भी केनेडा, जापान की तरह विकासशील देशो को मेट्रो निर्माण बाबत जरूरी चीजे/सेवाए निर्यात कर सकते है. इस परिपेक्ष्यमें मेट्रो रोजगार के नवीन अवसरों का निर्माण करेगा, ये बात बजेट-२०१७ में भी कही गयी थी.

सार

• Summary type: सतत विकास लक्ष्यों के अंतर्गत राष्ट्रों को बुनियादी ढांचे में नवीनता बढ़ाने, तथा सुरक्षित और टिकाऊ शहरों का निर्माण करने की जिम्मेदारी दी गई है। इस संदर्भ में, मेट्रो ट्रेनें सार्वजनिक परिवहन के महत्वपूर्ण तरीकों में से हैं। नई नीतिमें इन लक्ष्यों को प्राप्त करने के लिए प्रावधान इस प्रकार से बनाए गये है की अकेले सार्वजनिक क्षेत्र को पूरा वित्तीय बोझ सहन न करना पड़े।
• Finding type: यधपि आलोचकों और अर्थशास्त्रियों का मानना है कि मेट्रो ट्रेनों जैसी मुनाफे से पहेले लंबी गर्भावस्था अवधि वाली अवसंरचना को सार्वजनिक क्षेत्र द्वारा वित्त पोषित करना ही उपयुक्त है, किन्तु उपरोक्त विघ्नों को देखते हुए, राज्य अकेला वित्तीय बोझ सहन नहीं कर सकता है। अत: नई नीतिमें तीन निवेश मॉडल के प्रावधान है, ताकि शहरी परिवहन बुनियादी ढांचे में सुधार के लिए निजी पूंजी और नवाचार का भी उपयोग किया जा सके.