Labor reckons it can match NSW government plans to build a billion-dollar light rail line in western Sydney.
But it says it can do it without privatising the electricity network.
While yet to formally table a route, opposition leader Luke Foley says it makes sense for a line from Strathfield to Parramatta via Olympic Park.
Finance for the proposed project would include $600 million from Labor's $10 billion infrastructure package announced on Thursday.
Mr Foley had been under pressure to match Premier Mike Baird's aim of reaping $20 billion to spend on roads, railways, hospitals and schools through his planned lease of 49 per cent of the state's electricity distribution assets.
However, business groups say Mr Foley's $10 billion response minus the power deal amounts to an "attack" on small business.
Mr Baird has described the Labor blueprint as a shambles.
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