Bus system reform in India through JnNURM

Bus system reform in India through initiative under JnNURM – A way forward towards Sustainable Public Transport Jaspal Singh Delhi Integrated Multi-Modal Transit System Limited First Floor, ISBT Building, Kashmere Gate, Delhi - 110006

Structure of the Presentation
Urban Transportation Scenario in India
Bus Transport Scenario in India
National Urban Transport Policy (NUTP) 2006
Bus System reforms under JnNURM
Structural Reforms – A Pre-condition
Current Status
Indian Bus Industry
Impact of the Scheme

Population Growth in India India has witnessed a phenomenal growth in urban population (367 million as in 2010). Source: World Urbanization Prospects: The 2007 Revision Population Database, United Nations Population and Urban Population Growth in India, 2005-2015 (Figures in Millions)

Urbanization in India Source: ADB. 2006. Urbanization and Sustainability in Asia. Manila, Philippines. The pace of urbanization will not be as quick as in other places, but the given the mass the number will be large.

Indian Urban Population
The bulk of urban Indians (50%) stay in small towns with less than half a million population.
With increase in population, household incomes and economic activity, there is a heavy demands for urban transport systems.
In the absence of an adequate public transport system, the number of private and intermediate public transport (IPT) vehicles has increased to meet travel demand.
Source: World Urbanization Prospects: The 2007 Revision Population Database, United Nations Mumbai Delhi Kolkata City Size and Distribution of Urban Population, 2010 (Figures in Percent) Largest Cities in India (Figures in Millions)

2 nd Largest urban system
60% GDP generated from urban areas
5161 towns and cities
7 megacities (4 million + population)
28 cities with population 1-4 million
13 cities in 0.8 to 1.0 million range, will cross 1 million by next census
40 cities in 0.5 to 1 million population range and balance state capitals
Motorization rates are high
In 6 Metro Cities*, during 1981 to 2001
Population increased by 2 times
Motor vehicles increased by 8 times
India - Urban Transportation Scene Source: Ministry of Urban Development, GOI * Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad

Vehicles Growth in India – Present Scenario Source: Road Transport Year Book 2006-07 (March 2009), Ministry of Shipping, Road Transport & Highways, Govt. of India Vehicles Growth in India, 1998-2006 (Figures in Millions) Goods Vehicles 2.54 2.55 2.71 2.95 2.97 3.49 3.74 4.03 4.43 Buses incl. Omni Bus 0.54 0.54 0.56 0.63 0.64 0.72 0.76 0.89 0.99 Two Wheelers 28.64 31.33 34.12 38.56 41.58 47.52 51.92 58.80 64.74 Cars, Jeeps & Taxis 5.14 5.56 6.14 7.06 7.61 8.59 9.44 10.31 11.52 Others (LMV, Tractors, Trailers etc) 4.51 4.90 5.31 5.80 6.12 6.67 6.80 7.44 7.93

Urban Transport Scenario Forecast of Vehicle Populations in India (Figures in Million Vehicles) Total on road Vehicle Fuel Consumption (Figures in Million Tons of Oil Equivalent) From 1981 to 2001, population increased in six major metropolises by 1.9 times but motor vehicles increased by 7.75 times. Energy demand in transport sector projected to grow at 5-8% per annum CAGR 6.4% Source: Ministry of Urban Development, GOI Two Wheelers Cars HCV Three Wheelers LCV 49.1 63.9 121.3 246.1 372.7 CAGR 7.0%

Public Transport System in India
Commuters in Indian cities were earlier mostly dependent on Informal mode of public transport.
Organized Bus Transport Intermediate Public Transport

Organized City Bus Service in India Source: Study on Traffic and Transportation Policies and Strategies in Urban Areas in India, Wilbur Smith Associates, May 2008 In 2007, organized bus transport was available in only 24 cities. Sr. No. City No. of Buses 1 Panaji 8 2 Shimla 16 3 Agra 20 4 Bhuvaneshwar 32 5 Pondicherry 49 6 Guwahati 62 7 Surat 106 8 Hubli-Dharwad 170 9 Kanpur 176 10 Chandigarh 209 11 Bhopal 240 12 Nagpur 241 Sr. No. City No. of Buses 13 Trivandrum 242 14 Jaipur 327 15 Kochi 350 16 Madurai 609 17 Pune 824 18 Ahmedabad 886 19 Hyderabad 2546 20 Chennai 2816 21 Mumbai 3430 22 Bangalore 4182 23 Kolkata 4256 24 Delhi 6906

Bus Transport Situation Source: Various STUs, October 2009; Association of State Road Transport Undertakings Many million plus cities don’t have a proper bus system. S. No. STUs Fleet Size 1. Andhra Pradesh State Road Transport Corporation (APSRTC) 21,335 2. Maharashtra State Road Transport Corporation (MSRTC) 16,000 3. Gujarat State Transport Corporation (GSRTC) 8,000 4. Karnataka State Road Transport Corporation (KSRTC) 7,100 5. Uttar Pradesh State Road Transport (UPSRTC) 6,561 6. Rajasthan State Road Transport Corporation (RSRTC) 4,747 7. Kerala State Road Transport Corporation (KSRTC) 3,944 8. Delhi Transport Corporation (DTC) 3,626 9. Tamil Nadu State Road Transport Corporation (SETC) 3,257 10. Himachal Pradesh Road Transport Corporation (HRTC) 1881 11. Jammu & Kashmir State Road Transport Corporation (JKSRTC) 1060 12. PEPSU Road Transport Corporation (PRTC) 1,041 13. Uttarakhand Transport Corporation (UTC) 943 14. Bihar State Road Transport Corporation (BSRT) 531 15. Goa Transportation (Kadamba Transport Corporation - KTC) 432 16. Assam State Transport Corporation (ASTC) 349 17. Orissa state Road Transport Corporation (OSRTC) 261 18. Arunachal Pradesh State Transport services (APSTS) 233 19 Mizoram State Road Transport (MST) 64

National Urban Transport Policy (NUTP) 2006 India launched its first transportation policy in 2006, which focuses on moving people and not vehicles. Promote ITS, cleaner fuel & vehicle technologies for cities Projects to demonstrate best practices in sustainable transport Build capacity to plan for sustainable urban transport Ensure coordinated planning for urban transport Ensure integrated land use & transport planning People focused & equitable allocation of road space Investments in public transport & Non Motorized modes Strategies for parking space and freight traffic movements Establish Regulatory mechanisms for a level playing field Innovative financing methods to raise resources National Urban Transport Policy (2006) Source: “NUTP and JnNURM- Government of India Initiatives to Strengthen Public Transport”, S.K. Lohia, OSD (MRTS), MoUD, GOI

JnNURM
A mission for integrated development of urban infrastructure services with the assistance of the Centre, state and local bodies
Set up with US$ 20 billion outlay to cover 61 cities with a million-plus population in next seven years
Objective :
Provide basic services to urban poor (housing, water supply, sanitation, slum improvement, community toilets); and
Enhance overall urban infrastructure
Federal Government also launched a new scheme J n NURM (Jawaharlal Nehru National Urban Renewal Mission) to finance urban transportation initiatives.

As part of Second Economic Stimulus Package by Government of India (announced on 02 nd January 2009), the Government launched a scheme to provide one time assistance to States for the purchase of buses for their Urban transport system and identified 54 mission cities in the first phase.
The number of buses for various cities/states/para-statals was calculated on the basis of following parameters:
For mega cities (with population of 4 million) – 50 buses per 100,000 of population
For other cities (with population of 0.5 million to 4 million) – 40 buses per 100,000 of population
The financing of buses under JnNURM is exclusively for urban transport, i.e. city bus service and/or BRTS for the city/urban area for which buses are procured

The key objective of the scheme was to promote products with chassis and buses from manufacturing facilities in India.
In order to give a boost to the automobile industry, the government sanctioned funds to procure 14,220 buses for 54 mission cities under the JNNURM scheme.
The scheme not only helped to revive automobile industry but also build a sustainable public transport system.
The payment is linked with the progress of the project, as follows:
Installment Payment released by Central Govt. Milestones First Installment 50%
Submission of DPR Phase-I
Placement of purchase order to bus manufactures
Second Installment 40%
Submission of DPR Phase-II
Route permission by Road Transport Authority
Operations tie-up
Loan tie-up
Third Installment 10%
Commencement of satisfactory service operations

Urban Bus Specifications
Key Features of the Urban Bus Specifications code are:
Low floor (400mm), semi low floor (650mm) and standard buses (900mm) as against prevailing1100mm floor height (truck chassis).
First time in India, there are fully built buses for city-bus operation, whereas, earlier buses were built on truck-chasis.
Intelligent Transport System (ITS) features LED Sign Boards, Audio Visual Passenger Information, Multiplexing, On Board Diagnostics, Cameras, Integrated Controller GPS, GPRS, Smart card ticketing machines.

New Modern Buses Bus Types Estimated Cost (in US$) Normal Standard Bus (900MM) 50,000 Technologically-upgraded Standard Bus (900MM) 70,000 Semi Low Floor Bus (650MM) 100,000 Ultra Low Floor Bus (400MM) 120,000 Ultra Low Floor Bus with Air-condition (400MM) 140,000

Structural Reforms – A Pre-condition The key highlight of the scheme is that the Government did not just provide one time funding to procure buses, but also ensure that states should perform some structural reforms to build a sustainable transportation system.

State-wise Distribution State Cities Andhra Pradesh Tirupati, Hyderabad Assam Guwahati Bihar Patna Bodhgaya Chhattisgarh Raipur Delhi Delhi Gujarat Ahmedabad Haryana Faridabad Himachal Pradesh Shimla Jharkhand Jamshedpur, Ranchi, Dhanbad Karnataka Bangalore Kerala Thiruvananthapuram, Kochi Madhya Pradesh Indore, Bhopal, Ujjain, Jabalpur Maharashtra Pune, Pimpri Chinchwad, Thane, Nagpur, Nanded, Mumbai Manipur Imphal Orissa Bubneshwar, Puri Punjab Amritsar, Ludhiana Rajasthan Jaipur, Ajmer Tamil Nadu Chennai, Madurai, Coimbatore UT Chandigarh, Goa Uttar Pradesh Lucknow, Kanpur, Allahabad, Agra, Varanasi, Meerut, Mathura Uttarakhand Dehradun, Haridwar, Nanital West Bengal Kolkata, Asansol

State-wise Distribution & Centre Share The Government sanctioned 15,260 modern buses under economic stimulus package at a cost of US$ 1,020 Million.
In this phase, 61 cities in 25 states are covered for funding procurement of buses for urban transport under JnNURM. The Central Government contributed US$465 million for the purchase of 15,000 buses.
The Government plan to cover 118 cities having a population of 200,000 and above in second phase.
Cities States Population (2001) No. of Private Vehicles Existing Bus Transport Number of Buses Cost (in US$ Million) Centre Share Tripuati Andhra Pradesh 0.1 million --- Yes 50 2 50% Hyderabad Andhra Pradesh 3.8 million 1.8 million Yes 1000 63 35% Guwahati Assam 0.8 million --- Yes 200 12 90% Patna Bihar 2.0 million 0.2 million No 100 9 50% Bodhgaya Bihar 30,883 --- No 25 2 80% Raipur Chhattisgarh 0.6 million --- No 100 3 80% Delhi Delhi 14 million 6 million Yes 1,500 170 35%

State-wise Distribution & Centre Share Cities States Population (2001) No. of Private Vehicles Existing Bus Transport Number of Buses Cost (in US$ Million) Centre Share Goa Goa 1.4 million 0.5 million Yes 50 2 80% Ahmedabad Gujarat 5.8 million 2.1 million Yes 580 50 35% Faridabad Haryana 1.4 million --- Yes 100 12 50% Shimla Himachal Pradesh 1.0 million --- Yes 75 2 90% Jamshedpur Jharkhand 1.1 million 0.1 million No 50 1 50% Ranchi Jharkhand 0.8 million 0.2 million Yes 100 4 80% Dhanbad Jharkhand 2.4 million -- No 100 3 50% Bangalore Karnataka 8 million 3.7 million Yes 1000 72 35% Thiruvananthapuram Kerala 0.7 million --- Yes 150 12 80% Kochi Kerala 0.6 million --- Yes 200 16 50% Bhopal Madhya Pradesh 1.7 million --- Yes 225 20 50% Jabalpur Madhya Pradesh 1.3 million 0.3 million Yes 75 7 50% Indore Madhya Pradesh 0.2 million --- Yes 175 13 50% Ujjain Madhya Pradesh 0.5 million --- No 50 3 80% Pune Maharashtra 7.2 million --- Yes 500 36 50% Thane Maharashtra 1.6 million 1.1 million Yes 200 13 35% Nagpur Maharashtra 2.4 million --- Yes 300 14 50% Nanded Maharashtra 0.6 million --- Yes 30 2 80% Pimpri Chinchwad Maharashtra 1.1 million --- No 150 14 50% Mumbai Maharashtra 15 million --- Yes 1000 63 35% Imphal Manipur 0.3 million 91,265 No 25 2 90% Aizawl Mizoram 0.2 million 23,698 No 25 1 90%

State-wise Distribution & Centre Share Cities States Population (2001) No. of Private Vehicles Existing Bus Transport Number of Buses Cost (in US$ Million) Centre Share Bhubaneswar Orissa 0.7 million --- No 100 4 80% Puri Orissa 0.1 million --- No 25 1 80% Amritsar Punjab 1.1 million 380,000 No 150 7 50% Ludhiana Punjab 3.0 million --- No 200 14 50% Jaipur Rajasthan 2.3 million --- No 400 32 50% Ajmer Rajasthan 0.5 million --- No 35 2 80% Madurai Tamil Nadu 0.9 million --- Yes 300 20 50% Coimbatore Tamil Nadu 0.9 million --- Yes 300 20 50% Chennai Tamil Nadu 4.3 million 2.7 million Yes 1000 66 35% Agartala Tripura 0.5 million 73,000 Yes 60 4 90% Chandigarh UT 1.0 million --- Yes 100 12 80% Lucknow Uttar Pradesh 3.7 million --- No 300 20 50% Kanpur Uttar Pradesh 2.5 million --- No 300 20 50% Allahabad Uttar Pradesh 1.2 million --- No 150 8 50% Agra Uttar Pradesh 1.4 million --- No 200 15 50% Varanasi Uttar Pradesh 3.1 million --- No 150 9 50% Meerut Uttar Pradesh 1.1 million --- No 150 8 50% Mathura Uttar Pradesh 0.3 million --- No 60 1 50% Haridwar Uttrakhand 1.4 million --- No 60 3 80% Nanital Uttrakhand 0.8 million --- No 25 1 80% Kolkatta West Bengal 4.5 million --- No 1,200 80 35% Asanol West Bengal 1.1 million --- Yes 100 5 50%

Reforms in Urban Transport – State Level
All million plus cities should setup a city-level Unified Metropolitan Transport Authority (UMTA), duly backed by a legislation to facilitate coordinated planning and implementation of projects relating to urban transport and their integrated management.
Unified Metropolitan Transport Authority Urban Transportation Fund
The State should setup a Dedicated Urban Transport Fund. The fund can generate inflows from additional sales tax on petrol, additional registration fee on four-wheelers and two-wheelers, high registration fee for personal vehicles running on diesel, annual renewal fee on driving license and vehicle registration, congestion tax, green tax etc. to fund new projects in urban transport, compensate towards exemption of tax on urban buses, replacement of assets of public transport companies and, towards meeting the cost of various other concessions extended to encourage public transport by the State Government.

Reforms in Urban Transport – State Level
The State / City should make appropriate change in bylaws and Master Plans of cities to integrate land-use and transport by densification alongside major mass Transit corridors and areas around stations.
Integrated Planning
The State should set up of a regulatory/ institutional mechanism to periodically revise fares for all public and intermediate public transport systems.
Fare Revision
Transit Oriented Development (TOD) policy and amendments proposed in the bylaw to encourage TOD.
Transit Oriented Development (TOD)
The state government and ULB waiving off/reimbursing all its taxes on urban buses & city bus service/BRTS.
State Taxes

Reforms in Urban Transport – City Level
Cities also need to setup a Dedicated Urban Transport Fund, generating inflows through betterment levy on land in areas which benefit by investment in urban transport projects, rationalization of parking fee, property development tax, property development on the land banks with para-statals, advertisement revenue on transit corridors, employment tax which can be used for establishing fare contingency fund to meet the difference between the, public fare, and the 'technical fare‘.
Dedicated Urban Transport Fund Advertisement Policy
Cities should prepare an advertisement policy to generate advertisement revenue from transport, intermediate public transport and public utilities for public purposes.
Cities should evolve a parking policy wherein parking fee represents the true value of the land occupied. It can be used as a mechanism to curb private vehicles parking.
Parking Policy

Reforms in Urban Transport – City Level
There is a need to implement Intelligent Transport System (ITS) to improve the service and quality of city bus system. ITS includes Automated Vehicle Location System, Automated Fare Collection System, Priority Signaling for buses and real-time bus information system.
Intelligent Transport System Integrated Network
Cities should design bus routes to ensure multi-modal integration, including urban railways by involving Ministry of Railways (MoR) to provide network-connectivity in the region and single ticketing to provide seamless travel.
Cities also need to setup of a Traffic Information Management Control Centre (TIMCC) for effective monitoring and enforcement of traffic as well as data-generation and data-collection for future planning.
Traffic Management Control Centre

Current Status – Reforms in Different Cities The pace of the reforms is very slow in most of the cities. S. No. States SPV UMTA Transport Fund Helpline Number Dedicated Lane Advt. Policy Parking Policy ITS 1. Andhra Pradesh         2. Arunachal Pradesh         3. Assam         4. Bihar         5. Chandigarh         6. Chhattisgarh         7. Delhi         8. Goa         9. Gujarat         10. Haryana         11. Himachal Pradesh         12. J&K         13. Jharkhand         14. Karnataka         15. Kerala        

Current Status – Reforms in Different Cities S. No. States SPV UMTA Transport Fund Helpline Number Dedicated Lane Advt. Policy Parking Policy ITS 16. Madhya Pradesh         17. Maharashtra         18. Manipur         19. Meghalaya         20. Mizoram         21. Nagaland         22. Orissa         23. Pondicherry         24. Punjab         25. Rajasthan         26. Sikkim         27. Tamil Nadu         28. Tripura         29. Uttar Pradesh         30. Uttaranchal         31. West Bengal        

Challenges faced by STUs
Many states do not have experience and knowledge to manage bus operation. Secondly, states also did not able to find out strategic partner to finance, operate and maintain these buses.
Local bus manufacturers are having serious constraints in manufacturing integrated bus with ITS features.
Owning to big procurement orders from all states, there is also delay in delivery of buses from local bus manufacturers.
Testing infrastructure at Central Institute of Road Transport (CIRT) and The Automotive Research Association of India (ARAI) is not sufficient to test new types of buses.
Indian standards are silent on some issues for example, there is no standard of mat finished of paint. As such, for such items international standards and international procedures have to be followed.

Indian Bus Industry Bus Manufacturers in India - JnNURM Buses Bus Manufacturers Order Received Key Clients Tata Motors Limited 5,888 DTC, APSRTC, UPSRTC, BMTC Ashok Leyland Limited 5,209 DTC, APSRTC, UPSRTC, BMTC, BEST Volvo India Pvt. Limited 800 APSRTC Swaraj Mazda Limited 350 UPSRTC JCBL Limited 200 BEST Mercedes Motors Limited -- -- Satluz Pvt. Limited -- -- Ural Pvt. Limited -- --

Challenges faced by the Industry
Different states are placing different order with different specification. There is no uniformity. Ministry of Urban Development (MoUD) had laid down broad Urban Bus Specifications, various STUs have asked for different specifications , which results that
Tata Motors developed 16 prototypes
Ashok Leyland developed 24 prototypes
Commercial vehicle manufacturers’ still waiting for the release of payments to the tune of over US$ 450 million from various state transport agencies.
State transport agencies requires to submit Phase-II DPR and implement various reforms before claiming the second installment.
The central government gave the first installment for buses and will transfer the remaining share when states / cities will implement the reforms.

Impact of the Scheme
About 8,800 buses are on road as in September 2010.
34 new cities have organized city bus service.
State & local taxes on public transport is reduced upto 16% from 24% earlier.
The Government has released more than 50% to states, i.e. around US$ 237 million.
“ For the first time in the history of independent India, substantial assistance has been made available for purchase of 15,220 modern buses for city transport for 61 mission cities. As we consider public transport in cities a critical issue, we will try to organize assistance in procurement of such buses in 118 cities having a population of 200,000 and above” Mr. Jaipal Reddy Minister for Urban Development, “ According to the memorandum of agreements with the states, they were supposed to have undertaken many reforms like creation of an unified transport authority in the cities where these buses would ply. The states had also agreed with the Centre to roll out smart ticketing systems and a dedicated urban transport fund, among other things. Most of the states have failed to do so.” Mr. Saugata Ray Minister of State for Urban Development (September 2010)

Thank You!!! Jaspal Singh Deputy Manager (Road Transport) [email_address] / [email_address]

Bus system reform in India through JnNURM

by Jaspal Singh on Nov 13, 2010

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Bus system reform in India through JnNURM — Presentation Transcript