India’s metro rail sector is undergoing a paradigm shift, driven by robust investments, technology deployment and modernisation, as well as compelling policy measures. With strong emphasis on multimodal integration, sustainability and an expanding network, Nagpur Metro is committed to setting new standards in energy-efficient, environment-friendly and passenger-centric metro rail infrastructure for the next generation of urban development.
Sector progress, highlights and recent trends
Over the last decade or so, the Indian infrastructure sector has witnessed huge investments to match the pace of project development. The construction of roads, bridges and flyovers; concretisation of roads; and expansion of the existing railway network are some of the key developments taking place across the length and breadth of the country.
Along with road and rail transport, the metro rail sector has also witnessed transformative growth over the past decade and is now evolving under the influence of several structural and policy trends. The number of cities executing metro rail projects is increasing, as is the length of metro projects currently in operation in the country.
Metro rail, despite being a capital-intensive sector, has been a high priority because of its huge benefits in terms of reducing congestion on city roads, a challenge that almost every Tier I and Tier II city experiences. Congestion and pollution are some of the major factors that have propelled the need for huge investments in the metro rail segment.
The following key developments are shaping the sector’s growth trajectory:
- Rapid network expansion: India has emerged as one of the fastest-growing metro markets globally. As of December 2024, nearly 1,000 km of metro lines are operational across over 15 cities, with an additional 1,000 km under construction. This reflects the government’s strategic intent to expand modern urban transit systems beyond Tier I cities.
- Introduction of cost-optimised metro systems: To cater to smaller cities with moderate travel demand, alternatives such as Metroneo and Metrolite have been introduced. These systems provide the benefits of mass transit at significantly lower capital and operating costs, thereby enhancing financial sustainability and accessibility.
- Technological advancements and automation: The adoption of advanced signalling systems such as communication-based train control and driverless operations is accelerating. Delhi Metro has already deployed the unattended train operation system on its Magenta Line, with similar initiatives under way in other cities including Mumbai and Chennai.
- Standardisation and indigenisation: The Ministry of Housing and Urban Affairs has emphasised the need for the standardisation of critical components such as rolling stock, signalling and electrical systems. This initiative not only reduces procurement and implementation costs, but also fosters domestic manufacturing under the “Make in India” programme.
- Innovative financing models: While the central government continues to provide substantial budgetary allocations, metro projects are increasingly leveraging multilateral funding, public-private partnerships, municipal bonds and value capture financing (VCF). This diversified funding base is essential for sustaining long-term sectoral growth.
- TOD and VCF: Transit-oriented development (TOD) and VCF mechanisms have been integrated into the Metro Rail Policy, 2017, as mandatory elements for project approval. This promotes compact urban development around metro corridors, enhances ridership and unlocks additional revenue streams for project viability.
- Focus on non-fare revenue: With farebox collections alone insufficient to cover operating costs, metro corporations are increasingly monetising non-fare revenue opportunities. These include advertising rights, station retail spaces, real estate development and commercial exploitation of metro infrastructure.
- Regional integration and multimodal connectivity: Metro systems are being planned as part of integrated urban mobility frameworks. Emphasis is being placed on seamless connectivity with bus systems, regional rapid transit systems, non-motorised transport and last-mile solutions.
- Sustained phase-wise expansion: Major metro systems such as those in Delhi, Mumbai, Bengaluru and Pune continue to expand in phases, with large-scale tunnelling and viaduct construction ongoing. This ensures continuity of investment, employment and long-term city-wide coverage.
Overall, India’s metro rail sector is transitioning from a phase of rapid network expansion to consolidation, technological modernisation and financial sustainability. The interplay of innovative financing, system standardisation and integrated mobility planning will define the next decade of growth.
Network growth trajectory and future plans
Phase I of Nagpur Metro, covering 40.02 km, has been fully operational since December 2022.
Phase II of the Nagpur Metro expansion project is in full swing, with construction activities, including span launching, under way at three of the four planned corridors, namely Reach-1A, 2A/2B and 3A. This phase has been divided into four reaches for administrative convenience: Khapri to Maharashtra Industrial Development Corporation (MIDC) ESR (18.5 km and 10 stations), Prajapati Nagar to Transport Nagar (5.6 km and three stations), Automotive Square to Kanhan (13 km and 12 stations), and Lokmanya Nagar to Hingna (6.7 km and seven stations). About 80 per cent of the land required for Phase II has been acquired. The project has an estimated cost of about Rs 67.08 billion. It is being financed through a 50:50 equity split between the central and state governments (Rs 31.23 billion), as well as debt support of Rs 35.86 billion from the Asian Development Bank (Rs 20.58 billion) and the European Investment Bank (Rs 15.27 billion). The project, spanning 43.8 km and covering 32 stations, will be commissioned in a phased manner between 2026-27 and 2028-29, enhancing urban connectivity across the city. Once Phase II is completed, Nagpur will have a total metro network of approximately 84 km with 70 stations, expected to serve around 590,000 daily passenger trips by 2031 and 730,000 by 2041.
The ridership of Nagpur Metro Phase I has crossed the 0.12 million mark and is on a steady upward graph. The completion of the second phase will ensure better connectivity to the rural segments of Nagpur, and thus significantly push the ridership upwards.
Streamlining operational efficiency via smart mobility solutions
Seamless travel using interoperable smart cards and open-loop Europay, MasterCard and Visa payment systems is becoming the norm for metro rail networks. The roll-out of the National Common Mobility Card across multiple metro networks is part of the push for integrated ticketing and cashless mobility. These enhancements mark a decisive move towards efficient, user-friendly urban transit, underscoring the sector’s commitment to digital innovation and interoperability.
Green operations and practices
Metro systems are energy-intensive, with 40 per cent of their total operations and maintenance (O&M) costs going towards energy bill payments. Maha Metro, since its inception, has been using a significant amount of green energy in order to reduce pollution.
The main purpose of installing solar photovoltaics (PV) is to achieve sustainable, eco-friendly development, increase the share of green energy in metro operations and thereby reduce electricity bills. This reduction will be enabled by the lower cost of renewable energy and the benefit will be transferred to end-users via reduced ticket prices, aiding the public in general while reducing the carbon footprint.
Currently, the Nagpur Metro Rail Project consumes approximately 30 MUs of electricity annually across its two receiving substations. The project has identified a total solar PV potential of 10 MWp, expected to generate 15 MUs annually, meeting up to 50 per cent of the total energy needs of Nagpur Metro Phase I. So far, 4.5 MWp of rooftop solar PV plants have been installed and an additional 5.5 MWp of solar PV plants are being implemented.
Overcoming challenges
One of the primary challenges currently facing Maha Metro is the increasing electricity demand associated with maintaining and expanding metro operations. In response, Maha Metro has identified a substantial solar PV potential of 10 MWp on metro station rooftops and other suitable locations within Nagpur Metro Rail premises, which will be connected to the grid and meet up to 50 per cent of the total energy requirements of metro systems.
Near-term focus areas and priorities
The focus for Nagpur Metro will be on the execution and seamless roll-out of Phase II, which represents a strategic network expansion. It will add 43.8 km and 32 stations to the existing Phase I network. This extension will connect important areas such as Hingna, Kanhan, Butibori MIDC and Transport Nagar.
(This article is based on inputs from Maha Metro, Nagpur)
