Font size:
Print
Transit-Oriented Development (TOD)
Context:
Indian cities are on the verge of a transportation revolution, with ₹3 trillion set to be invested in approved metro rail projects between 2022 and 2027. These investments will not only improve urban mobility but also unlock significant economic potential.
More on News
- Research shows that public transportation investments can create thousands of jobs and generate economic returns 5-7 times the initial investment.
- To capitalise on these benefits and improve urban living, the Government of India introduced the National Transit Oriented Development (TOD) Policy and Metro Rail Policy in 2017, promoting TOD as a key urban planning strategy.
- As a result of this policy and financial support, 27 Indian cities are constructing metro rail systems, with many others developing rail- and bus-based mass rapid transit systems.
Transit-Oriented Development (TOD)
- Dilapidated Infrastructure: Public policies and land market conditions are promoting economic centres in suburban areas, but public transport systems are lagging behind. This results in longer commutes and increased congestion, hindering access to jobs and livability.
- For example, Bengaluru suffers significant traffic congestion, with a social cost of approximately ₹38,000 crore annually, or 5% of its GDP (2018 data).
- Transit-Oriented Development (TOD): It offers a promising solution to these challenges and supports India’s low-carbon growth objectives.
- TOD is based on the principle of integrating land use and transport, promoting compact, mixed-use development and sustainable transportation modes such as walking, cycling, and mass transit.
- This approach effectively separates density from congestion and economic growth from resource use and carbon emissions.
- Need for Integrated Planning: A recent publication by WRI India, titled “Jobs near metro rail transit in Bengaluru: Enabling an accessible and productive city,” highlights the need for integrated spatio-economic planning and emphasises bringing jobs closer to transit through TOD for significant benefits.
Benefits:
- Enhancing accessibility to jobs through safe and efficient transport modes can greatly improve workforce productivity and participation.
- The research indicates that there are approximately 200,000 registered enterprises in the Bengaluru Metropolitan Area (BMA), employing nearly 4.6 million workers, with service enterprises making up the majority.
- Proximity to workplaces and higher job densities drive transit ridership more effectively than residential density.
- Clustering job growth near transit creates an agglomeration effect that boosts innovation, productivity, and competitiveness, more so than dispersed job growth.
- This approach not only expands the worker and customer base for businesses but also stimulates local economic and real estate development, resulting in increased revenues for public agencies.
Case Study
High-functioning global cities like Hong Kong have a significant proportion of jobs located near transit stations, with 57% of jobs within 500 metres, 84% within 1 kilometre, and 96% within 2 kilometres, according to LSE data from 2013. Hong Kong boasts one of the highest levels of transit use, with 90% of motorised trips made via public transportation, and one of the lowest car ownership rates at 56 cars per 1,000 people. This efficient transit system has enabled Hong Kong’s Gross Value Added per capita to increase by 50% between 1993 and 2011, while fuel consumption and carbon emissions per capita decreased by 10%.
Way Forward:
- Opportunity to set Ambitious Targets: In Bengaluru, the upcoming revision of the city’s master plan presents this opportunity for job placement near transit and to strategise transit network extensions to connect existing and emerging high-density job clusters.
- Location-Efficient Incentives: Public policies can provide this e.g. additional development rights or fee/tax subsidies, to encourage businesses to locate near transit stations or in economically depressed areas.
- Funding: The government should explore alternative funding sources, including public-private partnerships and value capture financing mechanisms specifically earmarked for station area improvements.
- Nodal Agency: A nodal agency should be designated to facilitate interactions among multiple stakeholders and coordinate Transit-Oriented Development (TOD) planning and implementation.
- Role of Private Players: The private sector, including businesses, developers, and financing institutions, can significantly influence commercial and industrial investments near transit stations.
- Proactive partnerships between the public and private sectors can enable catalytic developments, enhancing amenities, improving public spaces, and providing last-mile connectivity between workplaces and transit stations.
