Policy Update
Shreeya Dixit
Background
A primary feature of urbanization and urban areas has been the development of transportation facilities in the specified areas. Transportation has always been a feature of progress, symbolizing connectivity and a means for growth. As per the World Bank estimates, 35% of India’s population is urban. Whereas, the Economic Survey 2025-26 highlights that the GDP/Population ratio of the top 10 cities in India is 3x times than that of other countries like the US, China or Germany.
This highlights the strain on the resources and infrastructure in urban regions. Similarly, with increased urbanization, the need for transportation has increased multi-fold. In accordance with the growing need for transport facilities, the Ministry of Housing and Urban Affairs came up with the Transit-Oriented Development (TOD) Policy in 2017. As of the Economic Survey 2025-26, around 1,036 km of Metro/RRTS are operational across around 24 cities as of 2025, with further corridors under construction.
In simple words, transit-oriented development indicates efficient usage of land in urban cities, and maintaining liveable and greener spaces while providing convenient transit facilities. The policy envisions the transformation of cities from private-focused vehicles to public transport-oriented, accessibility of public transport, and creation of compact walkable communities (Desk, 2025) (CBRE, 2025)
The TOD policy combines land use and transport planning to design high-density, walkable, mixed-use communities located 500-800 meters from transit stations, with goals of enhancing transit ridership, optimizing corridor utilization, and supporting pedestrian-friendly infrastructure.
However, a detailed analysis of the policy implies that the TOD policy has faced challenges in terms of governance capability, monitoring, inadequate multimodal integration and last-mile connectivity. Commuters complete their travel using a public service like a bus, a train or a metro service, but they use another mode of transport to reach those stations. Last-mile connectivity refers to the availability of transport services that are utilized to reach the transport station. This article essentially focuses on the last-mile connectivity and suggests possible recommendations.
Functioning
The TOD policy offers a statutory guideline to Urban Local Bodies (ULBs) and other planning authorities for integrating transit-oriented planning into their urban development strategies. The implementation of the policy requires the involvement of multiple stakeholders, including agencies responsible for infrastructure development, traffic control, public transport, and urban planning. The policy also recommends the formation of a coordinating committee to ensure effective implementation and to avoid unplanned congestion or over-concentration of development near transit facilities.
The TOD framework encourages increasing the Floor Area Ratio (FAR) and promoting vertical development to support higher density in areas around transit corridors. It also focuses on mixed land use, which allows residential, commercial, and public spaces to develop together in a planned manner. Another important component of the policy is the creation of Non-Motorized Transport (NMT) infrastructure, such as pedestrian pathways and cycling facilities, along with the development of feeder services and other facilities that improve last-mile connectivity.
The policy identifies influence zones, which are demarcated areas around transit stations, usually within a radius of 500 to 800 metres, where planned and compact development is to be encouraged. Within these zones, higher FAR, often ranging between 300-500 percent, is promoted to support sustainable growth and improve public transport ridership.
A key feature of TOD is multimodal integration, which aims to provide seamless connectivity across different modes of transport. The policy gives priority to pedestrians, cyclists, and other non-motorized transport users, while also recommending facilities such as bicycle parking, feeder transport services, and park-and-ride arrangements to improve accessibility to transit stations.
The TOD policy has been made mandatory under the Metro Rail Policy, 2017, and has also been identified as an essential reform under the Green Urban Mobility Scheme, which strengthens its role in urban transport planning.
In terms of financing, TOD is based on the idea that public investment in transit systems, along with increased FAR and mixed-use development, can lead to a rise in surrounding land and property values. The policy proposes Land Value Capture (LVC) as a key financing mechanism to use this increase in value for upgrading infrastructure and amenities within the influence zones, while also supporting improvements in the public transport system.
To support this financing approach, land value capture can be achieved through different methods, including enhanced land value taxes, one-time betterment levies, development charges or impact fees, and the transfer of development rights (TDRs). These mechanisms are intended to help generate additional financial resources for sustaining transit-linked urban development.
Beyond land use planning and financing, the TOD framework also includes several important components such as multimodal integration, street design, building regulations, open spaces, safety and security, parking management, institutional coordination, and a statutory planning framework. Effective coordination among different agencies and capacity building at the local level remain essential for successful implementation of the policy. (PIB, 2017)

Source: National TOD Policy, 2017
Performance
Since the launch of India’s National TOD Policy in 2017, the country has significantly expanded its metro infrastructure, thereby enlarging the spatial foundation for TOD implementation. At the time of the policy’s introduction, India had approximately 430 km of operational metro rail across 10 cities, with another 700 km under construction. By 2020-21, the operational network had expanded to over 700 km across 18 cities, while 1,010 km was under construction. This steady expansion reflects the growing emphasis on urban mass transit as a key part of India’s urban development strategy.
More recent data from the Ministry of Housing and Urban Affairs (MoHUA) further highlights this progress. According to the Year-End Review 2024, India now has 993 km of operational metro rail network, representing an increase of 745 km compared to May 2014, when only 248 km was operational. In addition, around 998 km of metro rail projects, including the balance portion of the Delhi-Meerut Regional Rapid Transit System (RRTS), are currently under construction across several cities, including Delhi, Bengaluru, Kolkata, Chennai, Kochi, Mumbai, Nagpur, Ahmedabad, Gandhinagar, Pune, Kanpur, Agra, Bhopal, Indore, Patna, Surat, and Meerut.
This substantial growth in metro infrastructure has expanded the geographical scope for Transit-Oriented Development, particularly through the creation of new transit corridors and station influence zones. As TOD focuses on compact development around transit stations, the increase in metro connectivity provides a stronger foundation for promoting higher-density development, improved accessibility, and reduced dependence on private vehicles.
The expansion of metro systems has also led to a significant increase in public transport usage. The average daily metro ridership, which stood at around 28 lakh passengers in 2013-14, has now crossed 1 crore passengers per day. This rise in ridership indicates the increasing importance of metro systems in urban mobility and reflects growing public reliance on mass transit.
Overall, the expansion of metro infrastructure can be seen as an important achievement in supporting the objectives of the TOD policy. It has strengthened the physical foundation necessary for compact urban growth and improved public transport access. (Year End Review 2024: MoHUA)
Impact
By reducing dependence on private vehicles and encouraging compact, walkable neighbourhoods, TOD aims to improve accessibility, support sustainable mobility, and lower the urban carbon footprint. Some key advantages include:
Pedestrian and NMT-Friendly Infrastructure
- TOD promotes continuous footpaths, cycle tracks, and pedestrian-friendly streets within the 500 to 800 metre influence zone.
- Priority is given to pedestrians and cyclists through universal accessibility features and safer street design.
Dense and Mixed-Use Development
- TOD encourages high-density residential, commercial, and public development near transit stations.
- Higher FAR and mixed-use zoning reduce travel distances and improve daily convenience. The TOD policy recommends FAR levels of 300 to 500 percent in designated influence zones.
Multimodal Integration
- TOD supports seamless connectivity between metro, bus, feeder transport, cycling, and walking.
Inclusive and Safe Access
- TOD promotes inclusive housing and safer access routes within transit zones.
- The policy also recommends reserving 10 to 15 percent of built-up area for EWS (Economically Weaker Section) housing in influence zones.
Managed Parking and Reduced Vehicle Use
- TOD discourages excessive private vehicle use by restricting or pricing parking near stations.
- Park-and-ride facilities are encouraged mainly at terminal stations to reduce congestion in dense urban areas.
Emerging Issues: Persistent Last-Mile Connectivity Challenges
Accessibility has remained a major issue in terms of the impact of various policies. And a similar problem can be observed in metro usage in urban India. The convenience and access of reaching a metro station remains a major concern, reducing the number of potential users. The Economic Survey 2025-26 also highlights that first- and last-mile connectivity underpins the metro usage and suggests legalizing and mainstreaming shared auto-services, e-vehicles and bus services. Several studies highlight that inadequate first- and last-mile access continues to reduce metro usage, increase travel costs, and limit the overall impact of transit investments. (IIT-D Report, 2024)
Lower-than-Expected Metro Ridership
- A study by IIT Delhi and a Delhi-based think tank found that the projected ridership of the Delhi Metro was below 50 percent of expected levels, with poor last-mile connectivity identified as one of the major reasons.
- The study noted that most commuters relied on walking and intermediate public transport (IPT), such as auto-rickshaws, for first- and last-mile travel, highlighting the need for better integration of feeder buses and para-transit services.
Higher Commuting Costs
- Another study on Delhi Metro usage found that weak last-mile connectivity often increases the overall cost of commuting.
- In many cases, commuters spend more on access modes such as auto-rickshaws and feeder transport than on the actual metro fare, reducing the affordability of public transport.
Persistent Gaps Despite Infrastructure Improvements
- Poor pedestrian infrastructure, limited feeder services, unreliable para-transit integration, and safety concerns continue to affect seamless access to transit stations.
WRI’s pivotal study of 7,200 commuters from three major cities, namely Delhi, Bangalore, and Nagpur, has brought forth various important observations. The study highlights (Rajeshwari, n.d.) (Mehta & Mathew, n.d.) :
- A lack of awareness about commuters’ requirements is observed in terms of last-mile connectivity. Secondly, the context of every city dictates which solutions work and which do not. The report concludes that solving the connectivity problem requires assessing commuters’ needs and the feasibility of the plan.
- Commuters are willing to spend only 20 minutes on the first and last-mile connectivity. However, a frequency and capacity mismatch is often observed in terms of infrequent bus feeder services, lack of information, and route mismanagement.
- Disparities in terms of income class and gender is primarly observed. Commuters falling in the low-income class (income group less than INR 10,000) are averse to spending high amounts for last-mile connectivity. Moreover, women are reluctant to spend longer hours waiting and end up spending more for transport services.
- The report significantly highlighted that a paradox is often observed in urban areas, in terms of presence of high-quality metro stations but lack of access to these stations.

Source: WRI Working Paper, 2023

Source: WRI Working Paper, 2023
Way Forward:
Addressing the challenge of last-mile connectivity requires a combination of better feeder services, improved urban design, and stronger multimodal integration. Solutions such as female-driven auto-rickshaw services can help create safer and more inclusive transit access, especially during early morning and late evening travel hours. At the same time, the wider use of GPS-enabled vehicle tracking systems in feeder transport can improve passenger safety, route transparency, and service reliability. Integrating real-time tracking with metro and mobility applications can further strengthen trust in last-mile services and encourage greater use of public transport.
The report also further suggests funding the feeder services through the value capture. The WRI India study recommends increasing the frequency and reliability of feeder services while also conducting more detailed studies to better understand commuter needs and travel behaviour. Improving access to transit stations through pedestrian-friendly urban design and effective parking demand management is equally important, as these form the foundation of successful Transit-Oriented Development (TOD).
International examples such as Arlington, Curitiba, Portland, and Singapore show that prioritizing urban form and accessibility around transit stations, rather than focusing only on increasing density, has been effective in improving mobility outcomes and enhancing surrounding property values. Singapore’s National Cycling Plan (NCP) offers another relevant model, where the government is expanding cycling networks and redesigning streets to better accommodate pedestrians, cyclists, buses, and cars, particularly in response to limited urban land.
Furthermore, in cities like London and Singapore, a common ticketing system has been developed that can be universally used for using any public mode of transport. Equal importance is given to pedestrians and especially to people with disabilities, which has increased the number of users using metros and buses. Japan has developed MaaS (Mobility as a Service) wherein individual travel needs of the commuters are taken in and an optimal, integrated option for booking and payment is provided to the commuters.
Similarly, a detailed study by the ORF highlights that improving last-mile connectivity requires integration at multiple levels, including physical, service, institutional, and information integration, all of which contribute to stronger urban economic growth.
Some Indian cities have already begun implementing innovative solutions. In Mumbai, last-mile connectivity is being strengthened through initiatives around Metro Line 1, where the MMRDA, in collaboration with WRI India and the Toyota Mobility Foundation, has launched the Station Access and Mobility Program to improve crowd management and station accessibility through public-private partnerships. Technology-based solutions are also being introduced, with startups such as Orbo.ai, which uses artificial intelligence to reduce travel time at fare collection gates, and MYBYK and AllMiles, which provide app-based transport services.
Similar efforts can also be seen in Bengaluru, where multiple initiatives have been introduced to improve metro accessibility. In collaboration with BMTC, 212 feeder buses now operate across 60 routes, serving 46 metro stations with around 2,712 daily trips. A pre-fixed auto-fare booth system has also been introduced at selected stations, while parking facilities for 16,000 two-wheelers and 2,654 four-wheelers have been provided across 53 metro stations. Additional efforts include app-based auto-rickshaw partnerships through Namma Yatri, skywalks and subways connecting metro stations with nearby transport hubs, and free bicycle parking along with dedicated bicycle stands introduced in partnership with DULT.
These examples suggest that improving last-mile connectivity requires a combination of policy support, public-private collaboration, technology-driven solutions, and city-specific transport integration strategies to ensure that metro expansion translates into more accessible and efficient urban mobility. Moving forward, the success of India’s TOD policy will depend not only on building metro systems, but on ensuring that commuters can reach them easily, safely, and affordably.
References
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Desk, I. (2025, December 3). Transit-Oriented Development in India: Why practice lags behind policy – IMPRI impact and Policy Research. IMPRI Impact and Policy Research Institute. https://www.impriindia.com/insights/transit-oriented-development-in-india/
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SWACHH SURVEKSHAN 2017 CONDUCTED BY RANKING 434 CITIES. SWACHTHA SURVEKSHAN -2018 COVERING ALL 4041 CITIES TO COMMENCE FROM 4TH JAN, 2018. (n.d.).
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About the Contributor:
Shreeya Dixit is a Research and Editorial Intern at IMPRI. She has completed her MSc Economics from the Symbiosis School of Economics, Pune. Her research interests include urbanization and developmental science.
Disclaimer
All views expressed in the article belong solely to the author and not necessarily to the organisation.
Acknowledgement:
The author would like to thank the entire IMPRI Team and Aananya Atri and Varisha for their valuable feedback and support for the article.




