This feature enables MPLS services L2VPN, L3VPN, EVPN traffic steering with SR-policy as the underlying transport using local-tunnel-policy configuration. This is achieved with the help of color coding and association between service and MPLS transport.

A local-tunnel-policy is created which specifies the color of the transport-tunnel in order to be selected for a VPN service. The created tunnel-policy is now applied for the VPN service so that it will select the preferred tunnel. The destination address of the preferred tunnel identifies a peer PE so the PE will forward traffic destined for that peer PE over the preferred tunnel. If you specify multiple preferred tunnels that have the same destination address in a tunnel policy, only the first configured tunnel takes effect and if the first tunnel is not available, the second tunnel is used, and so forth. No load balancing will be performed on these tunnels.

The tunnels selected by 2 methods, dedicated and best-effort. By default, tunnel policy uses dedicated method. If you configure dedicated method for a tunnel policy, the tunnel policy uses the preferred tunnel to forward traffic destined for the peer PE. If not, the MPLS VPN service will be down. If you configure best-effort method for a tunnel policy, the tunnel policy uses the preferred tunnel to forward traffic destined for the peer PE. If not, the MPLS VPN selects the available MPLS transport in MPLS forwarding table.