The central government will approve and aid metro rail projects only if they have private participation and ensure last-mile connectivity for users, under a new policy cleared by the Union cabinet on Wednesday.Under the new metro rail policy, states will get powers to make rules and regulations and set up permanent fare fixation authorities. In line with global best practices, metro projects will be approved on the basis of ‘Economic Internal Rate of Return of 14%’, a change from the existing ‘Financial Internal Rate of Return of 8%’.

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