As part of Second Economic Stimulus Package by Government of India (announced on 02nd 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 61 mission cities in the first phase. The presentation gives a brief overview of the complete scheme and its current status.

1. 6th
UITP Asia-Pacific Congress
In conjunction with 3rd
International Conference on Public Transport Financing
15-19 November 2010, Hong Kong, China
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

2. 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

3. 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)

4. Urbanization in India
29%
17% 17%
49%
40%
29%
61%
55%
41%
World Asia India
PercentageUrbanized
1950 2005 2030
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.

5. 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
20.0
17.0
16.0
2 0 1 0
Mumbai
Delhi
Kolkata
City Size and Distribution of Urban Population, 2010
(Figures in Percent)
Largest Cities in India
(Figures in Millions)

6. • 2nd
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

7. 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
Source: Road Transport Year Book 2006-07 (March 2009), Ministry of Shipping, Road Transport & Highways, Govt. of India
41.4 44.9 48.8
55.0 58.9
67.0
72.7
81.5
89.6
1998 1999 2000 2001 2002 2003 2004 2005 2006
Vehicles Growth in India – Present Scenario
Vehicles Growth in India, 1998-2006
(Figures in Millions)

8. 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
0
50
100
150
200
250
300
350
400
2005 2008 2015 2025 2035
49.1
63.9
121.3
246.1
372.7
CAGR
7.0%
58.0
73.0
115.0
221.0
371.0
2005 2008 2015 2025 2035
CAGR
6.4%
Source: Ministry of Urban Development, GOI
Two Wheelers CarsHCVThree Wheelers LCV

9. Public Transport System in IndiaOrganizedBusTransport
Commuters in Indian cities were
earlier mostly dependent on Informal
mode of public transport.
IntermediatePublicTransport

10. Organized City Bus Service in India
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
Source: Study on Traffic and Transportation Policies and Strategies in Urban Areas in India, Wilbur Smith Associates, May 2008
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
In 2007, organized bus transport was available in only 24 cities.

11. Bus Transport Situation
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
Source: Various STUs, October 2009; Association of State Road Transport Undertakings
Many million plus cities don’t have a proper bus system.

12. 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

13. 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 JnNURM
(Jawaharlal Nehru National Urban Renewal Mission) to finance
urban transportation initiatives.

14. Bus System reforms under JnNURM
• As part of Second Economic Stimulus Package by Government of India
(announced on 02nd
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

15. Bus System reforms under JnNURM
The key objective of the scheme was to promote products with
chassis and buses from manufacturing facilities in India.
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
• 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:

16. 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.

17. 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

18. 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.

19. 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

20. 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
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%
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.

21. 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%

22. 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%

23. 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.

24. 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

25. 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

26. 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

27. Current Status – Reforms in Different 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        
The pace of the reforms is very slow in most of the cities.

28. 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        

29. 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.

30. Indian Bus Industry
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 -- --
Bus Manufacturers in India - JnNURM Buses

31. 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.

32. 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)

33. 6th
UITP Asia-Pacific Congress
In conjunction with 3rd
International Conference on Public Transport Financing
15-19 November 2010, Hong Kong, China
Thank You!!!
Jaspal Singh
Deputy Manager (Road Transport)
Jaspal.singh@dimts.in / jaaaspal@gmail.com