Getting urban transport on track

Knowledge Partner
Getting
Urban Transport
on Track
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Ms Binu Kwatra
Additional Director - Transport Infrastructure
FICCI
Ph: 011-23487496
Mobile: 9811689247
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E : arvindmahajan@kpmg.com
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E : msaigal@kpmg.com
Partner and Head,
Transport & Logistics, KPMG in India
For more details, please contact

Knowledge Partner
Getting
Urban Transport
on Track

02 Getting on TrackUrban Transport
Foreword
Mr Hemant Kanoria
Chairman & Managing Director
Srei Infrastructure Finance Ltd
I am happy to share with you the FICCI-KPMG Report Getting Urban Transport on Track to be
released at the India Urban Transport Summit 2012. By 2030, 600 million people will be
living in Indian cities that will account for 70% of the country's GDP. Public transportation
has a key role to play in sustaining the rapid urbanization that India is experiencing today. To
bridge the huge gaps in availability of public transport in the country, investments to the tune
of 4 trillion rupees are needed in the 12th five year plan alone.
The success of the Delhi Metro is testimony to the fact that there is enormous demand for
mass transit if the service is efficient and provided at affordable rates. Having recognized the
pressing need, central and state governments have taken several measures towards
removing constraints on service delivery and resources for urban transport. But roadblocks
on financing, land acquisition and regulatory issues still remain.
It is imperative to discuss these critical issues today so that the urban Indian has a viable
alternative to private motorized transport available tomorrow. FICCI understands the
enormity of the challenges to be overcome. The India Urban Transport Summit 2012 in New
Delhi is therefore timely. It will focus on the role of private sector to get past the roadblocks
and how success stories in some cities can be emulated in others.
As our knowledge partner, KPMG has prepared this background paper covering a large
number of areas. The report looks at the past, present and future of urban transport in India
through detailed analysis of factors influencing the sector. I take this opportunity to thank the
KPMG team.
I hope that you will find this report useful and as always, your suggestions and feedback are
welcome.

Getting on TrackUrban Transport 03
Foreword
Urban transportation in India is in a state of significant transition. Relegated to the bottom
half of the list of India's infrastructure requirements over the last few decades, it has now
risen to prominence, driven by a massive need to provide sustainable solutions to India's
burgeoning urban population. As per the Census of India 2011, 377 million persons live in
India's cities, constituting 31% of the total population. This is expected to increase to over
40% of the total population by 2030. From an urban transportation perspective, this could
possibly be one of the largest markets in the world.
Historically, transportation solutions in India's cities have been implemented more on an ad
hoc basis rather than as holistically planned, fully functional systems. The legacy of
transportation systems handed down from the days of the Raj and still functioning in cities
like Mumbai and Kolkata are in dire need of significant overhaul and upgradation. As India's
middle class' propensity to opt for personal transportation solutions increases, there is a
need for a world-class, efficient and self-sustaining public transportation system in India's
cities. Keeping this in mind, the Ministry of Urban Development formulated the National
Urban Transportation Policy which prescribes guidelines for the successful development of
urban mass transit solutions in India. While this is definitely a step in the right direction,
embattled issues related to legislation, regulatory framework, financing and political
propaganda continue to plague progress.
Despite this, India is now home to one of the largest and most successful metro rail transit
the Delhi Metro Rail Corporation-systems- in the world. Other cities too have implemented or
planned mass transit projects representing an overall investment opportunity of over INR 4
1
trillion . Other successful projects such as the Ahmedabad Bus Rapid Transit System are
testimony to the fact that urban bodies are definitely taking charge of urban transportation
needs.
This paper comprises of an analytical account of India's urban mass transit needs alongside
the large investment opportunity presented by urban transportation over the next decade,
with the intention of helping investors and entrepreneurs understand the current scenario.
The paper also discusses the various challenges that normally impede progress and
implementation and identifies parameters for a successful urban mass transit system.
Arvind Mahajan
Partner and Head,
Global Infrastructure
KPMG in India
Manish Saigal
Partner and Head,
Transport & Logistics
KPMG in India
1
Recommendations of Working Group on Urban Transport for 12th Five Year Plan, 2011 and KPMG India Analysis

1 Identifying the Urban Mass Transportation Market . . . . . . . . . . . . 7-14
Need for urban MRTS in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07
Evolution of urban transport in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2. Trends in Urban Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15-21
Regulatory framework for urban transportation in India . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Trends in system selection for rail-based urban transport . . . . . . . . . . . . . . . . . . . . . . . . . 17
Bus Rapid Transit System in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3. Key Implementation Issues for Mass Transport Projects . . . . . . 22-25
Financing urban transportation projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Land Acquisition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Environmental and regulatory impediments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
4. Parameters for a Successful Urban Transport System . . . . . . . . . 27-30
§
§
§
§
§
§
§
§
Accessibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Affordability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Travel Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Travel Experience. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
§
§
§
§
5. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Table of
Contents

Glossary of Terms
BEST Brihanmumbai Electric Supply & Transport Undertaking
BMTC Bangalore Metropolitan Transport Corporation
BOT Build-Operate-Transfer
BRTS Bus Rapid Transit System
CAGR Compounded Annual Growth Rate
CMRL Chennai Metro Rail Limited
DMRC Delhi Metro Rail Corporation Limited
EIA Environment Impact Assessment
GDP Gross Domestic Product
GHMC Greater Hyderabad Municipal Corporation
GNCTD Government of National Capital Territory of Delhi
IPT Intermediate Public Transit
JBIC Japan Bank for International Cooperation
JICA Japan International Cooperation Agency
JNNURM Jawaharlal Nehru National Urban Renewal Mission
KSRTC Karnataka State Road Transport Corporation
MMRDA Mumbai Metropolitan Region Development Authority
MoEF Ministry of Environment & Forests
MoUD Ministry of Urban Development
MRTS Mass Rapid Transit System
MRVC Mumbai Railway Vikas Corporation Limited
NCT National Capital Territory of Delhi
NGO Non-Governmental Organisation
NUTP National Urban Transportation Policy
O&M Operations & Maintenance
PHPDT Peak Hour Peak Direction Traffic
PPP Public Private Partnership
RTO Regional Transport Office
RVNL Rail Vikas Nigam Limited
SPCB State Pollution Control Board
TDR Transfer of Development Rights
UA Urban Agglomeration
UMTA Unified Metropolitan Transport Authority
WGUT Working Group on Urban Transport

1.1 Need for Urban MRTS in India
Indian Urban Scenario
Population in Indian cities has been growing at a rapid rate and urbanization is causing a
strain on transport infrastructure. Over the last decade (2001-11) urban population grew at
a CAGR of 2.8% while total population grew at a CAGR of 1.6%, a clear indication that Indian
2
cities continue to attract emigrant population . 377 million Indians live in urban areas,
3 4
constituting 31% of the total population. This is expected to increase to 40% by 2030 . In
addition to the increasing density of existing cities, the formation of new agglomerations is
creating a greater need for an effective urban transport system. Census of India has identified
475 UAs in 2011 up from 384 in Census 2001. Out of these 475 UAs, there are 53 which have
a population of more than one million. There are nine with population of more than 4 million
and three mega UAs - Mumbai, Delhi & Kolkata - having more than 10 million people.
2
Census of India 2011 (Provisional)
3
4
McKinsey & Company, 2010
Identifying the Urban Mass
Transportation Market
Chart 1.2 Urban Population
400
350
300
250
200
150
100
50
0
Million
2001 2011
Persons Males Females
CAGR 2.8%
Chart 1.1 Total Population
1,400
1,200
1,000
800
600
400
200
0
Million
2001 2011
Persons Males Females
CAGR 1.6%
1

Interestingly, the population growth in the three mega UAs has decelerated during
2001-11 as compared to the period 1991-2001. The growth rate of population for the
Mumbai UA has dropped from a CAGR of 2.7% to 1.14%, for Delhi UA from 4.29% to 2.39%
5
and for Kolkata from 1.81% to 0.67% . 41% of the urban population in India still resides in
6
small cities with population less than 100,000.
Historical precedents in other large cities across the globe indicate that as economies
mature, trend towards greater urbanization are logical progressions. In India, which until the
last two decades had only 4 or 5 large cities, we are witnessing the emergence of a new
trends with small towns exhibiting characteristics of populous non-metros. Cities in India are
7
expected to account for 70% of India's GDP by 2030. This level of unprecedented growth will
increase demand for services like housing, power and transportation. A greater need for a
more efficient, sustainable and reliable public transportation system is the need of the hour,
not just in the large metros, but across all populous towns.
Modal Share of Urban Transportation Systems
Public transportation preferences and acceptance are dependent on several factors. In India,
a majority of public transport users are low or mid income wage earners and as a result, for
the upper and middle class population, using public transportation is a question of image
consciousness rather than practicality. At present, several alternate modes of transportation
exist including non-motorized transport and personal vehicles. The current modal share in
Indian cities is in favor of non-motorized transport with walking, cycling & cycle rickshaws
8
constituting around 38% of the total. The average trip length in cities with a population of
less than a million is in the range of 2 to 3 kilometers making them suitable for non-
motorized transport. Even in large cities, with a population of more than a million, non-
motorized transport acts as a preferred inter-modal transport link. Public transport remains
9
a distant second accounting for around 27% of total modal transportation.
Sr. No. Urban Agglomerations 2001 2011 CAGR State
1 Mumbai 16.43 18.41 1.14% Maharashtra
2 Delhi 12.88 16.31 2.39% NCT Of Delhi
3 Kolkata 13.21 14.11 0.67% West Bengal
4 Chennai 6.56 8.70 2.86% Tamil Nadu
5 Bangalore 5.70 8.50 4.07% Karnataka
6 Hyderabad 5.74 7.75 3.04% Andhra Pradesh
7 Ahmedabad 4.53 6.35 3.45% Gujarat
8 Pune 3.76 5.05 2.99% Maharashtra
9 Surat 2.81 4.59 5.01% Gujarat
Table 1.1: Population (in million)
Source: Census of India 2001 & 2011 (Provisional)
5
http://censusindia.gov.in/
6
7
McKinsey & Company, 2010
8
Wilbur Smith Associates, 2008
9

Chart 1.3 depicts that the preferences for public transport increases with increase in average
trip length. Cities with a higher average trip length, especially urban agglomerations
spreading across vast areas and districts should necessarily have an effective public
transport system. The 9 UAs in Chart 1.7 which currently have a population of more than 4
million people have an average trip length in the range of 6 km to 12 km. The modal
preference for public transport in these cities is mainly due to the existence of public
transport. In the absence of public transport, preference is towards personal vehicles, mainly
two-wheelers.
Source: Wilbur Smith Associates, 2008
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Walk
Two Wheeler
Car
Average Trip Length (Km)
Cycle
Public Transport
Intermediate Public Transit
<0.5 mn
With plain
terrain
<0.5 mn
With hilly
terrain
0.5- 1.0
mn
1.0- 2.0
mn
2.0- 4.0
mn
4.0- 8.0
mn
>8 mn National
Chart 1.3: Choice of modal share & average trip length in 2007
Chart 1.4 Modal Share in
Low Income Cities
Chart 1.5 Modal Share in
High Income Cities
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Hongkong Greater New
York
London
UK US
Singapore
Singapore
Tokyo
JapanChina
Metro & Rail
Car & Two Wheeler
Bus
Non- Motorised Transport
LahoreJohannesburg ShanghaiMumbaiBogota
Non
Metro & Rail
ChinaPakistan
Car & Two Wheeler
Bus
Source: Adapted from Mythologies, Metros & Future Urban Transport, Dinesh Mohan, 2008
South
Africa
Colombia
India

A comparison of the modal share in low income cities, globally (Chart 1.4), is representative
of a high preference towards non-motorized transport & public transport. The share of
private vehicles especially motorized two-wheelers can be attributed to the cost of
affordability and the existence of road infrastructure in these cities. In contrast, the choice of
modal transport in high income cities, globally (Chart 1.5), indicates a high preference for
private motorized transport, except in Hong Kong & Tokyo, both having very dense and
10
congested central business districts and restrictions on parking. These characteristics are
similar to those in Mumbai and Delhi which present a strong case for an effective and
integrated public transport system. The public transport share in high income cities includes
Bus & Metro Rail services.
Chart 1.6 Estimated Mode Share for select cities(%)
2007
2011E
2021E
2031E
2007
2011E
2021E
2031E
2007
2011E
2021E
2031E
2007
2011E
2021E
2031E
2007
2011E
2021E
2031E
2007
2011E
2021E
2031E
2007
2011E
2021E
2031E
Public Transport
<0.5 mn with plain terrain <0.5 mn
with hilly terrain
1.0-2.0 mn
Intermediate Public Transit & Private Vehicle
0.5-1.0 mn 2.0-4.0 mn >8 mn
Non-Motorised Transport
4.0-8.0 mn
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
10
Newman & Kenworthy 1999 (adapted from Dinesh Mohan, 2008)
According to a Study on traffic and transportation policies and strategies in urban areas in
India, conducted by Wilbur Smith Associates for Ministry of Urban Development in 2008, it is
anticipated that the share of public transport in the modal pie will gradually decrease and be
substituted by private motorized transport in future, driven mainly by a wealthier
population.

Mumbai has an existing suburban rail system spanning a range of over 200 kms covering the
entire urban agglomeration with a ridership of about 7 million persons per day. This
represented 38% of the total population as of FY 2011. Delhi has commissioned about 190
kms of metro rail transport and has a ridership of less than 2 million persons per day
11
representing about 13% of the population of the NCT of Delhi UA.
Recent trends indicate a need for not just independent and isolated solutions to India's urban
transportation needs. Indian cities are in dire need for intelligent and wholly integrated
transportation solutions which provide long haul, short haul and last minute connectivity. As
cities continue to grow, the scale of transportation requirements will only increase, requiring
mass transit solutions such as bus rapid transit and metro rail solutions.
1.2 Evolution of urban transport in India
The architecture for public transportation in India was laid down by the British during the
pre-independence period. Like the Railways, the British are also credited with implementing
organized public transportation in India's metros. This structure was then replicated in
several cities, particularly in the bus transportation sector, which continues to this day. The
British also introduced the suburban rail and tram systems in the cities of Kolkata, Mumbai &
Delhi. While the trams are struggling to survive in Kolkata, they have been discontinued in
other cities and replaced by state / locally run bus services. In contrast, the suburban rail
systems developed by the British have been expanded on a large scale by the Indian Railways
to meet the growing demand of the urban population.
11
Press Release by Delhi Metro Rail Corporation press, August 2011
Chart 1.7 Choice of modal share & average trip length in 2007 (Select Cities)
14.00
12.00
10.00
8.00
6.00
4.00
2.oo
0.00
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Cycle
Car
Two Wheeler
Mumbai Delhi Kolkate Chennai Bangalore Hyderabad Ahmadabad Pune Surat
Walk
Public Transport
Average Trip Length (Km)

Tram & Buses in Kolkata
Trams were first introduced in the city of Kolkata, the Capital of the British in India, in the
1800s. In the early 1980s, Calcutta Tramways used to carry 0.75 million passengers per day
with 275 cars on the road. However, presently it carries only around 0.16 million passengers
per day or about 1% of the population in Kolkata, with 170 cars operational. There has been
a sharp and progressive decline in ridership over the last 20 years due to lack of investments
and modernization, slow speed, loss of reserve right of way, and unreliable service. The fares
are the lowest amongst all modes ranging from Rs1.50 to Rs 2.00. Each tram car has a
capacity of 60 passengers but has an underutilization of more than 50% of the capacity.
12
Calcutta Tramways introduced bus services in the year 1992.
Tram & Buses in
The Bombay Tramway Company Limited commenced operations in the year 1873 and
initially the tram-cars were drawn by horses. In 1905, the Bombay Electric Supply &
Tramways Company Limited introduced the first electrically operated tram-car and
subsequently Double Decker trams were introduced in 1920. Mumbai saw its first bus
service in 1926. Double Decker buses were introduced in 1937, in order to cope better with
the growing traffic. The first limited bus service in Mumbai, and probably the first in the
country as well, started in the year 1940. When the BEST Corporation took over the
Company in 1947, there were 242 buses in operation on 23 routes and these buses carried
0.24 million passengers per day. At present, there are 3,380 buses carrying 4.5 million
13
passengers daily on 335 routes.
The Mumbai Suburban Railway
The Mumbai suburban railway started in the year 1925 and is one of the oldest railway
systems in India covering the entire Mumbai Urban Agglomeration. It spans across two
divisions of the Indian Railways, Central Railway & Western Railway, and has about 317 kms
of network within the Mumbai UA and extended peri-urban areas in the Thane & Raigad
districts. The suburban railway system carries 7 million passengers per day representing
about 38% of the population of Mumbai UA, which has grown at a CAGR of 2.7% in the last 5
years. The average length of travel on the Mumbai suburban network was about 33 kms in FY
2011 with a peak-hour frequency of 3 to 4 minutes. The Ministry of Railways has developed a
joint venture with the Government of Maharashtra (Mumbai Railway Vikas Corporation
14
Limited) for planning and further development of the Mumbai suburban rail system.
Mumbai
12
The Calcutta Tramways Company Limited Website
13
BEST Undertaking Website
14
Mumbai Rail Vikas Corporation Website and Annual Statistical Statements, Indian Railways, 2011

Chennai Suburban Railway & Elevated MRTS
Chennai has an existing Suburban Railway system which started in the year 1979. Based
within the Chennai Urban Agglomeration, the suburban rail system spans a length of over
169 kms consisting of 23 kms of Elevated Mass Transit System which is also operated by the
Indian Railways, in spite of being fully separated from the Chennai Suburban Railway. The
suburban rail system carries about 1 million passengers on a daily basis representing around
7% of the total population of the Chennai UA (as of 2011). The average length of travel on the
Chennai suburban network is about 23 kms with a peak-hour frequency of around 5 to 10
15
minutes.
16
The average ridership per day on the Elevated MRTS is about 80,000 persons. The main
reason for the low ridership is lack of intermodal transit systems at the stations. The Chennai
Metropolitan Development Authority is evaluating plans to transfer the Elevated MRTS to the
17
Chennai Metro Rail Corporation upon completion of Phase-I of the Chennai Metro. The
Elevated MRTS is currently being extended by 5 kms to enable it to connect to one of the
18
stations of Phase-I of Chennai Metro.
Delhi Ring Railway
The Delhi Ring Railway started in the year 1982 and is operated by the Northern Railway
division of Indian Railways. It is spread over a distance of 37 kms and runs parallel to the
ring road. The frequency of trains is around 60-90 minutes during the peak hour and the
average distance travelled is 17 kms. The daily ridership was a mere 8,300 persons in FY
19
2011. This network is now utilized as a freight corridor and limited passenger services are
20
available during peak hours.
Kolkata Metro
The Kolkata Metro Railway was the first Metro to open its commercial services in 1984 under
the Ministry of Railways. The pressing need for Kolkata Metro was due to the low road
15
Annual Statistical Statements, Indian Railways, 2011
16
Business Today, 2010
17
Times of India, March 15, 2012
18
Indian Railways Year Book 2008-09
19
Annual Statistical Statements, Indian Railways, 2011
20
IBN Live, March 14, 2012
Mumbai Suburban Railways# FY11 FY10 FY09 FY08 FY07
Route Kilometrage (Kms) 381 381 381 376 376
Originating Passengers (millions) 2,638 2,545 2,515 2,478 2,374
Growth in Originating Passengers 3.6% 1.2% 1.5% 4.4% 5.1%
Originating Passengers Per Day (millions) 7.23 6.97 6.89 6.79 6.51
Passenger Kilometers (millions) 91,119 87,482 82,846 79,021 72,826
Earnings from Passengers Carried (INR million) 12,287 11,689 11,437 11,128 9,992
Average Kilometers Travelled (Kms) 33 32 31 30 29
Table 1.2
# Includes 64 kms of Lonavala-Pune suburban network not considered to be material
Source: Annual Statistical Statements, Indian Railways

surface area of 6% of the total area in Kolkata. This rato ranges between 25% to 30% in
other cities. The construction of the Kolkata Metro was more of a trial-and-error affair and it
took nearly 23 years to completely construct a 17 km underground stretch. The Metro was
constructed progressively from 1972 to 1995 with Phase-I (comprising of a length of 3.04
Kms from Esplanade to Bhowanipur- now Netaji Bhuvan completed in 1984. The length of
21
around 17 kms was commissioned in 1995.
Delhi Metro
Delhi Metro based in the National Capital Territory of India serves the Delhi UA. It is one of
the largest metro networks in the world. Construction of Delhi Metro started in 1998, and the
first Red Line opened in 2002, followed by the Yellow Line in 2004, the Blue Line in 2005, the
Green and Violet Lines in 2010 and the Delhi Airport Metro Express in 2011. In contrast to
the Kolkata Metro, the first Phase of Delhi Metro was completed in 2006 within the estimated
22
budget and about three years ahead of schedule. The network consists of six lines with a
total length of 190 kms with 142 stations of which 35 are underground. It has a combination
of elevated, at-grade and underground lines with approximately 60 km of standard gauge
23
network and 130 km of broad gauge network.
Individual preferences of the urban populace have propelled the evolution of urban transport
in India, right from Kolkata Tram in the 1880s to the Delhi Metro in 2011. The British made
no secret of their preference for rail based systems over bus services evidently as heavy loads
could be carried along a smooth track more easily than on a rough road. In the early days, the
trams remained the cheaper mode of transport for the poor and even the initial bus services
introduced in Mumbai were preferred only by the elite. Even today Kolkata Tram remains the
24
cheapest compared to any other mode of public transport. However, as the income levels of
the people rise, their willingness to pay higher fare for a more comfortable and faster mode
of travel tends to increase.
The Indian Railways have played a vital role in the development of the urban transport
systems in major cities. However, a Mass Rapid Transit system which is independent of other
transport modes and is designed for high frequency of services is key to the efficient
development of India's increasing urban agglomerations. The
has taken a step in the right direction to segregate the suburban train
operations from the main line passenger and freight services with construction of additional
lines as a part of the Mumbai Urban Transport Project Phase II.
Mumbai Railway Vikas
Corporation Limited
21
Kolkata Metro North-South Corridor Website
22
Forbes.com May 11, 2009
23
Delhi Metro Rail Corporation Limited Website
24
The Calcutta Tramways Company Limited Website

Trends in
Urban Transportation
2.1 Regulatory framework for
urban transportation in India
Urban transportation in India has been largely neglected for a variety of reasons. With over
20 different components of urban mobility and a similar number of local, state and central
government bodies involved in the execution of transport projects, the sector is
characterized by lack of coordination and limited accountability. Under the present
management structure, while the ultimate responsibility for urban transport remains with
the MoUD, Indian Railways or the road transport and highways department at the central
government level, at the state level it is managed either by the urban development or
transport ministry. At the city level, responsibilities for different components lie with
different agencies. For example, bus transport services are generally provided by a dedicated
state road transport undertaking (BEST, KSRTC, BMTC etc.) as a separate body or under the
control of a city agency, while the local RTOs (regional transport offices) could also issue
route licenses to private bus operators. There could also be independent agencies set up by
city authorities for operating BRTS services in the same city (Delhi, Ahmedabad). Metro rail
services are presently being planned, implemented and operated by dedicated companies,
normally JVs between state and central governments, while suburban railways, where
available, are run by the Indian Railways under the central government.
Fragmentation of roles and responsibilities between various government bodies for each
aspect of urban transportation has only blurred the lines of jurisdictional authority and
resulted in duplication of responsibilities, undermining of accountability and resistance to
change by government bodies. A weak institutional framework, particularly at the city level,
has made the coordination between various authorities ineffective making several projects
fail implementation. There exists a greater need for integration between various
agencies when considering urban transportation projects.
Diffused responsibility has also ensured that urban transportation remains a secondary
responsibility for several agencies; with most of them focusing largely on their primary
duties (e.g. Indian Railways primarily looks into intercity transport while municipalities
mainly look into civic services). With the lack of a dedicated agency oversee the
implementation of urban transport initiatives across cities and coordinating efforts of all
government participants, this is expected to hamper implementation over the long term. In
addition, as budgets are allocated to agencies whose sole responsibility might not be urban
transportation, effective allocation remains a concern. The lack of specialized transport
professionals in government agencies also remains an issue.
The implementation and operation of urban transport projects is also governed by
ambiguous legislation in India. As of today, there are only three acts specific to mass rapid
transport: The Tramways Act, The Delhi Metro Railway (O&M) Act, 2002 and the Metro
Railways (Construction of Works) Act, 1978. In addition, there are several other acts that
deal with other transport matters such as The Railways Act, 1989, The Motor Vehicles Act,
1988, The Road Transport Act, 1956 etc. While the number of rules and laws enacted might
during
2

seem adequate, they are grossly insufficient. There exists a dire need for a comprehensive
legislation covering all aspects of urban transportation. Supporting legislation around urban
transportation acts (worker's compensation, taxation rules etc.) must also be strengthened
to provide transparency in operations and legal recourse when issues persist.
In the recent past, there has been some headway in the direction of creating an independent
body to oversee urban transportation needs at the city level. Several working groups on
transportation as well as the National Urban Transport Policy recommends the setting up of
a Unified Metropolitan Transport Authority (UMTA) at the city and state level, with ultimate
decision making at the central level residing with the MoUD (in the absence of a Transport
Ministry at the center). With several cities, including Bangalore and Mumbai having already
set up UMTAs as an administrative need, this is only expected to aid project implementation
and is definitely a good step in the right direction.
Expected Investment Impetus
Recognizing the increasing need for rapid expansion in existing public transportation
infrastructure across cities in India, the 12th Plan envisions substantial investment across
developing metros and bus services in India's large cities and small towns / districts
respectively. The plan also touches on the need for separate agencies in States and cities to
manage the multi-component urban transport sector in an integrated and coordinated
fashion.
Chart 2.1 Planned Investments
1,400
1,200
1,000
800
600
400
200
INRBillion
Total INR 3,883 Billion
Source: Recommendations of Working Group on Urban Transport
Of the total planned investment of INR 3,883 billion envisaged in the 12th Plan, INR 2,026
billion is estimated to be the projected investment in public transport, bus infrastructure and
other associated features. This includes an estimated investment of INR 1,505 billion to be
invested in the urban rail sector alone.
Financing of these outlays is expected to be done through coordinated investments by the
state and central governments, private concessionaires, international and domestic debt and
through property development of allotted land. Interestingly, the Planning Commission
expects that more than a third of the overall expenditure requirement in the urban
25
transportation sector will be funded by the private sector. This could indicate a greater
inclination towards executing projects through the PPP route.
New
Pedestrian,
NMV,
Streetscaping
New Roads Upgradation
of Roads
Buses BRTS Metro Rail Commuter /
Regional Rail
Bus Depots,
Terminals &
Workshops
Other Urban
Infrastructure
Street Infrastructure Public Transport Others
Upgradation
of
Pedestrian,
NMV,
Streetscaping
25

2.2 Trends in System Selection for
Rail Based Urban Transport
The selection of a suitable mass rapid transit system in India is mired in a combination of
political propaganda, individual preferences and cost effective selections, none of which
might ever see eye-to-eye making it tougher than it looks. It is not uncommon for cities and
governments to select a viable transportation option in one year and find that option most
unsuitable as governments change or land acquisition stalls implementation. Generally, the
decision to select whether a Mass Rapid Transit System (MRTS) is suitable for a particular
city is dependent on the geographical location, shape & size of the city, the population
demographics, existing transport systems and the projected growth in public transport. One
size fits all approach cannot be adopted based on the response of a particular system in any
other city.
The Idea for a Mass Rapid Transit System in India was first conceived for the city of Kolkata.
The Calcutta Mass Transit study prepared a plan in 1971 envisaging construction of five
rapid rail transit lines, aggregating to a route length of 97.5 kms. However, only the priority
line on the North-South axis over a length of 16.45 km was prioritised and constructed over a
11 year period from 1973 to 1984 with the entire stretch being commissioned gradually over
the next 10 years. The Indian Railways built the Kolkata Metro using the existing railway
technology with a broad gauge rolling stock and electrification traction of 750V direct
current. However, the remaining four lines were not taken up and Kolkata couldn't get a
26
complete MRTS.
The implementation issues associated with the Kolkata metro, notwithstanding Delhi Metro
for the National Capital Territory region, was taken up by the Government of India in 1989
and a report was submitted by RITES Limited in 1995. The Government of India and the
Government of National Capital Territory of Delhi then set up Delhi Metro Rail Corporation
Limited (DMRC) with equal partnership. The Delhi metro was constructed using a
combination of broad and standard gauges, to allow a seamless integration with India's
existing rail network using alternating current technology. The decision on what gauge
26
Kolkata Metro Website and Urban Mobility for All, Swets & Zeitlinger, 2002, Case Study on Calcutta Metro
Central
Government
Debt from
domestic financial
institutions
State Government/
Development
Authorities
Property
Development
Private Sector Debt from
Multilateral/
Bilateral institutions
1,600
1,400
1,200
1,000
800
600
400
200
Chart 2.2: Sources of Finance
Total INR 3,883 Billion
INRBillion

should be adopted by metro systems has now been left to the decision of the respective state
governments and today three of the Delhi Metro rail lines including the modern Airport
27
Metro Express connection are on Standard Gauge.
The last few years and the recent past has seen an explosion of announced MRTS projects in
every large UA in India. In fact, proposed projects have also been announced in several
smaller UAs, a sign that governments are also recognizing the need to plan for likely
urbanization early in a city's life.
The proposed investment and the length of Metro Rail in India are represented below.
27
Delhi Metro Rail Corporation Website
Kms INR
Bn Kms INR Bn Kms INR
Bn Kms INR Bn Kms INR Bn
-
5.2 6.0
MEGA Metro
Gujarat
Extension
18.0 43.0
6.2 11.0 Kanpur Metro 27.0 65.0
11.1 19.8 Ludhiana Metro 28.8 66.0
11.1 23.6 Bhopal Metro 29.0 80.0
-
14.7 48.8 Patna Metro 40.0 80.0
25.3 51.5 Nagpur Metro 45.0 82.0
81.7 110.4 41.0 83.9
35.2 95.2 12.0 18.3 Indore Metro 33.0 85.0 63.0 189.0
-
25.1 18.3
42.3 115.9
10.4 21.8 Lucknow Metro 40.9 120.2 Pune Metro 82.0 246.0
22.7 57.0 Metro 71.2 141.3 14.0 40.0 Line 3 33.5 161.8 82.8 248.4
65.0 105.7 45.0 146.0 43.6 77.1
Delhi Metro
Phase IV 104.0 185.0 96.3 288.9
124.6 200.0 108.0 352.4 31.9 115.0
Namma Metro
Extension 72.0 270.0 157.9 473.7
Operational
237.5 381.0
Under
Construction 456.8 1,121.8
Planned
111.8 272.1
Under Planning
512.2 1,321.9
Proposed
482.0 1,446.0
Chandigarh
Metro
Chennai Metro
Phase 2
Mumbai Metro
Line 4 to 9
MEGAMetro
Gujarat Phase II
Mumbai Metro
Navi Mumbai
Metro Phase II
Gurgaon Rapid
Metro Phase I
Navi Mumbai
Metro Line 1
Mumbai Metro
Line 1
Kolkata East
West
Kochi Metro
Kolkata Metro
Line 3 to 6
Kolkata North
South Extension
Delhi Metro
Phase III
Jaipur Metro
Phase I
Namma Metro
(Bangalore)
(Partly
Operational)
Hyderabad
Chennai Metro
Phase 1
Kolkata North
South
Delhi Airport
Express
Delhi Metro
Phase I
Delhi Metro
Phase II
Navi Mumbai
Metro Line 2 & 3
Delhi Airport
Express
Extension
Gurgaon Rapid
Metro Phase II
MEGA Metro
Gujarat Phase I
Mumbai Metro
Line 2
Index
Government PPP Private PPP Expected Ministry of Railway
Table 2.1 Estimated Investments in Metro Rail
Source: www.indianrailways.gov.in, http://www.kolmetro.com, http://kmrc.in, http://www.delhimetrorail.com, http://www.rinfra.com,
http://bmrc.co.in, http://chennaimetrorail.gov.in, http://www.mmrdamumbai.org, http://hyderabadmetrorail.in,
http://www.jaipurmetrorail.in, http://www.gujaratmetrorail.com, http://www.kochimetro.org, http://www.cidcoindia.co,
http://www.gidc.gov.in, http://www.ilfsindia.com, http://www.railway-technology.com, Media Articles, KPMG India Analysis.

The Recommendations of Working Group on Urban Transport (WGUT) has laid out
guidelines for system selection. As per the WGUT, a city should have a ridership of at least 1
million on organized public transport in order to be eligible for a metro rail system, whereas
a monorail is desirable only as a feeder system or where the narrow roads are flanked on
either side by high rise buildings. In a monorail, while the costs of construction, operation
and maintenance are almost the same as an elevated metro rail, but the carrying capacity is
much less.
Modal Choices PHPDT in 2021 Population as per Average Trip length
2011 census for motorized trips
Metro Rail More than 15,000 persons for at Greater than 2 million Greater than 7 to 8 kms
least 5km continuous length
Light Rail Transit primarily Less than 10,000 persons Greater than 1 million Greater than 7 to 8 kms
at grade
Monorail Less than 10,000 persons Greater than 2 million About 5 to 6 kms
Bus Rapid Transit System More than 4,000 and upto 20,000 Greater than 1 million Greater than 5 kms
Organised City Bus Service - Greater than 50 thousand in Greater than 2 to 3 kms
case of hilly towns & 100
thousand in case of others
Table 2.2
The proposed investment and the length of Mono Rail in India are represented below.
Aiza wal Monorail 5.0 7.5
Ahmedabad Monorail 30.0 50.0
Bangalore Monorail 60.0 90.0
Delhi Monorail 90.0 135.0
Kanpur Monorail 63.0 94.5
Kolkata Monorail 72.0 108.0
Kozhikode Monorail 14.5 15.0
Mumbai Monorail
Corridor 1 to 7 135.2 213.9
Patna Monorail 32.0 25.0 Mumbai Monorail Line 3 29.6 44.4
Mumbai Monorail
Line 1 19.5 49.2 Chennai Monorail#
111.0 166.5
Thiruvananthapuram
Monorail 41.8 51.0 Pune Monorail 52.0 78.0
Under Construction 19.5 49.2 Planned 111.0 166.5 Under Planning 88.3 91.0 Proposed 536.8 821.3
Index
Kms
INR
Bn
Kms
INR
Bn
Kms
INR
Bn
Kms
INR
Bn
Government Expected PPP PPP Expected
# Government of Tamil Nadu is considering to withdraw monorail corridor 1 of length 54 Kms (Source: The Hindu, Feb 23, 2012)
Source: http://www.mmrdamumbai.org, http://www.mtcbus.org, Media Articles, KPMG India Analysis
Table 2.3: Estimated Investments in Mono Rail

The perception of having an underground transit system makes the metro a preferred mode
of transport to other rapid transit systems like the BRTS.
2.3 Bus Rapid Transit System in India
Bus Rapid Transit System(BRTS) is a high-quality bus-based transit system that delivers fast,
comfortable and cost-effective urban mobility through the provision of segregated right-of-
28
way infrastructure, rapid and frequent operations. Implementation of BRTS was first
considered for the city of Delhi when RITES Limited prepared the detailed feasibility report
29
for implementing BRTS on five selected corridors in 2003.
JNNURM accelerated the development of BRTS in India with assistance of 35% to 50% of the
project cost from central government and balance funding done by respective state
governments and local bodies. The current length of BRTS for projects planned in India and
the costs approved by the MoUD under JNNURM are represented in Table 2.4. Except for the
BRTS in Delhi which is being funded by GNCTD, all projects are being funded by assistance
30
under JNNURM.
28
ITDP Planning Guide
29
Delhi Integrated Multi-Modal Transit System
30
JNNURM Website
Kms
INR
Bn Kms
INR
Bn Kms INR
Bn Kms
INR
Bn
Indore 11.7 0.98
Rajkot 29.0 1.10
Bhopal 42.2 2.47
Kolkata 15.5 2.53
Jaipur 33.3 4.04
Vishakhapatnam 45.2 4.53
Jaipur 6.2 0.75 Surat 29.9 4.69
Delhi 5.8 0.86 Ahmedabad 43.5 5.81
Pune 17.0 1.03 Pimpri-Chinchwad 41.3 7.38
Ahmedabad 45.0 4.00 Vijayawada 15.2 1.51 Pune 98.7 9.48 Indore 14.3 1.80
Operational 74.0 6.65 Trial Operations 15.2 1.51 Under Construction 390.2 43.02 Approved 14.3 1.80
Source: http://jnnurm.nic.in, http://www.dimts.in
Table 2.4 Estimated Length & Project Cost of BRTS Projects in India

The implementation of BRTS in India has received mixed responses. One of the critical issues
in the success of BRTS in India is the lack of signaling system on roads. It is common for
critical junctions in some cities to be manually operated by the traffic police and this hinders
right-of-way for buses plying on the route. A BRTS must be complemented with an Intelligent
Traffic System to achieve the planned PHPDT and the targeted average speed of the buses in
order to make it effective.
500
450
400
350
300
250
200
150
100
50
Lengthinkms
New Expansion
vishakhapatnam, 61
Vijayawada, 30
Surat, 95
Rajkot, 34
Pimpri-
Chinchwad, 71
Jaipur, 111
Indore, 62
Naya Raipur, 46
Hyderabad, 39
Coimbatore, 28
Chennai, 70
Bhubaneshwar, 49
Bangalore, 35
Chart 2.3 Estimated length of future expansion &
new BRTS projects in India
Source: Municipal Corporation Websites, EIA Reports, http://tripp.iitd.ernet.in, http://niua.org, Media Articles, KPMG India Analysis
-

Key Implementation Issues for
Mass Transport Projects
3.1 Financing Urban Transportation Projects
While government funding for urban transportation projects has seen an unprecedented
growth over the last few years and continued impetus on funding of planned projects is
expected, there exists a large gap between requirement and availability. Considering that
overall urban transportation projects require an investment of over INR 4 billion over the
31
next few years, this gap is only expected to get wider. Until recently, all urban transportation
projects in India were wholly owned by state and central governments, including some of the
newer metros like Delhi (DMRC) and Chennai (CMRL). With the exception of the above, as
discussed earlier, most other legacy government funded transportation projects have
suffered from an inefficient quality of service, low return possibilities and outdated
technologies. Lack of adequate funds has also made upgradation of the existing
infrastructure difficult and time consuming.
Consequently, we have seen that most state governments are happy to pursue the Public
Private Partnership (PPP) route to fund their pet transportation projects. The reasons for
this are numerous. Firstly, as most PPP agreements are structured as BOT contracts, the
government need only act as an overseer of development and operations, giving room for
innovation and improved quality of services. This has also paved the way for large
multinationals interested in the Indian transportation opportunity to bid for tenders and
engage with Indian consortium partners in knowledge and best practice sharing. Secondly, it
presents a unique opportunity for private concessionaires to earn returns on potentially
large projects.
31
Sr. No. Metro Projects on PPP Basis Status Kms Estimated Project Cost
(INR Billion)
1 Delhi Airport Express Operational 22.7 57.0
2 Mumbai Metro Line 1 Under Construction 11.1 23.6
3 Hyderabad Metro Under Construction 71.2 141.3
4 Gurgaon Rapid Metro Phase I Under Construction 6.2 11.0
5 Mumbai Metro Line 2 Planned 31.9 115.0
Total 143.1 347.9
Table 3.1 Metro Projects on PPP Basis
Source: http://www.rinfra.com, http://www.mmrdamumbai.org, http://www.ilfsindia.com, http://www.railway-technology.com,
Business Standard, April 6, 2011
3

While it is fair to assume that a majority of urban transportation projects may be profitable
for a private concessionaire, this may not always be the case. In fact, on several occasions
these projects would be unfeasible for a private participant, considering the low returns
promised over rather lengthy horizons of over 20-30 years. Keeping this in mind, state and
central governments provide viability gap funding up to a maximum of 40% of the project
32
cost to make investments in such projects more attractive for private concessionaires.
On the other hand, government funded projects are generally financed using a combination
of equity and debt, with states and central governments forming SPVs to finance equity and
raising debt from an international source.
While definitely proving to be the preferred route of funding by the state and central
government, PPP has its share of risks and concerns. The selection of an appropriate
concessionaire is critical to successful implementation. In addition, as projects are awarded
to private concessionaires, in consortiums, coordination between parties needs to be
managed well. Interestingly, as per the concept paper on Innovative financing of Metro
Projects, written in April 2012, by Joint Secretary of MoUD, PPP based rail projects have not
been very successful globally. Of the 113 metro rail projects analysed, only about 13 cities
had some sort of PPP structures while the remaining were all developed and operated in the
public sector. While the reasons for the reluctance of governments to use the PPP route has
not been specified, it does indicate that there is a need for alternative and innovative
financing mechanisms to fund large projects.
In response to this, the government is now considering using land as a resource as well as
other dedicated levies / taxes to create an Urban Transport Fund at the state and central
government level. The is expected to raise additional finances by
capturing the increased land and property value from sale / rental proceeds of properties
along the metro corridor. In addition, it is also envisaged to levy certain taxes and cess on
existing properties along the metro corridor to pool resources that may be utilized to fund
projects. Other sources that could also be used involve revenues from parking, advertising,
33
employment taxes etc.
3.2 Land Acquisition
Land acquisition for infrastructure projects has always been a key challenge in India leading
to delays in project execution. Urban transportation projects are no exception to the same.
Social implications such as population displacement, location of places of worship, public
sentiments over heritage properties and other social reasons provide constant public
resistance and impede progress. These issues hence make planners align MRTS projects in
such a way that they need to acquire minimum land. Sometimes routes need to be re-aligned
after the plan has been initially approved due to land acquisition issues leading to cost
escalations. Litigation during the land acquisition process are common and court rulings
sanctioning higher compensation for the displaced affect, the project cost.
Monorail projects usually do not face significant land acquisition issues as they are elevated
routes and the alignment can even take sharp curves to avoid acquisition of additional land.
However, the Working Group on Urban Transport has recommended the use of monorail only
Urban Transport Fund
32
Scheme and Guidelines for Financial Support to Public Private Partnerships in Infrastructure, Department
of Economic Affairs, Ministry of Finance, GoI, 2008
33
The concept paper on Innovative financing of Metro Projects, written in April 2012, by Joint Secretary of MoUD

as feeder system or where the narrow roads are flanked on either side by high-rise buildings.
A BRTS project needs land to widen the road for constructing a dedicated corridor. In the city
of Pune, the pilot BRTS Project of 17 kms has been completed except a section of about 4 kms
34
where army land could not be acquired and the buses move along with the road traffic in
this stretch instead of having dedicated lanes. Such issues reduces the overall effectiveness of
having a BRTS system.
During the construction of Hyderabad Metro Rail, Greater Hyderabad Municipal Corporation
(GHMC) paid compensations that exceeded the government value of land for road widening
35
and for the planned metro rail project. A 12-month delay in the land acquisition for
36
Hyderabad Metro has led to a cost overrun of about 10%.
Innovative ways of giving Transfer of Development Rights (TDR) in lieu of compensation for
land have eased the difficulty in acquisition of land in cities. Residents in Chennai have even
37
gifted private land to CMRL for construction of Chennai metro. Constructing a metro rail
underground does not lead to land acquisition issues except for the petitions filed by the
residents living above the corridor who fear weakening of their building structure.
3.3 Environmental and Regulatory Impediments
A sustainable transport system should co-exist with the need to safeguard the environment.
However, sometimes cutting trees becomes inevitable along the alignment of a planned
route. While providing an effective and less-polluting public transport system which helps in
reducing the overall levels of pollution within the city, the development of an MRTS must
strike a balance between environmental damage and long term benifits
The Ministry of Environment & Forests (MoEF) has made it mandatory for various
construction projects to secure environment clearance from the ministry prior to
construction. The clearance process includes an environmental impact assessment, public
hearing, and obtaining consent to establish and operate, from the State Pollution Control
board (SPCB). Residents and NGOs may also resort to filing of public interest litigations for
environmental concerns, which could lead to long drawn litigations and sometimes also
resulting in re-alignment of the proposed route.
In Kolkata Metro line 3, which is under construction by RVNL, plans are being envisaged to
change the route alignment by taking the elevated metro underground by almost 7 kms to
reduce damage to the environment. This change is expected to escalate project costs by more
38
than 50%. To develop Hyderabad metro, about 3,000 trees need to be removed or
39
translocated. The development of the Bangalore metro provoked a series of protests by
40
residents concerned about thousands of trees that had to be cut down for the project.
34
Pune Mirror, April 17, 2012
35
Times of India, April 30, 2012
36
The Mint, May 1, 2012
37
The Hindu, February 16, 2012
38
Times of India, Kolkata Dec 5, 2011
39
The Hindu, Jan 20, 2012
40
NDTV, July 25, 2011

41
Crisil Research, Jan 31, 2012
42
Hindustan Times, March 4, 2012
On several occasions implementation plans for large MRTS projects undergo frequent
changes with respect to route length, construction methodology, etc. on account of
opposition from authorities such as Airports Authority of India(AAI), Archaeological Survey
of India(ASI), etc. in granting clearances.
In Phase - I of the Delhi Metro, there were delays on account of land acquisition due to issues
raised by the ASI. In Bangalore Metro Phase – I there were delays in obtaining permission
from the ASI for relocating the Ambedkar statue near the Vidhan Sabha in Bangalore and
obtaining permissions from the Railway authorities for building an underground metro rail
41
track at the city railway station.
In the case of Mumbai metro line 2 which has been won by the Reliance Infrastructure
consortium, the AAI has communicated to MMRDA to reconsider the 9-metre elevated
42
corridor which may obstruct the flight path of aircraft at Juhu Aerodrome.

It might not be possible to identify generic parameters for the successful implementation of
an urban mass transit project, considering that it is dependent on specific requirements,
terrain and social construct of a city, but the transport research support program, a joint
initiative of the World Bank and Department for International Development, has laid down a
framework for the benchmarking of urban transport projects in 2011, which outlines key
areas that are critical for success taking into account the constraints faced in the developing
countries. These are briefly discussed below:
1. Accessibility: An effective public transport system has to be accessible to all
travelling public. This indicates that the transport system should be integrated with
a wide network so as to cover even the remotest area within a short distance from
the public transport system. It should be accessible through a non-motorized form of
transport, ideally walking.
2. Affordability: In a developing country, affordability is a key criterion for choosing a
particular mode of transport. In a scenario where a parallel system works with two
different modes of public transport, a person with low income may prefer the
cheaper mode even at the cost of comfort or speed. In Kolkata, there are bus services
running in parallel to the North-South underground metro system covering almost
the entire route.
3. Travel Efficiency: Where a commuter has a choice of service and willingness to pay,
travel efficiency will play an important role in selecting the public transport system.
The travel efficiency can be represented in:
Speed of the Journey: Overall journey time and certainty around the journey time
are key considerations for selecting a public transport system. Delhi Metro has
an average speed of 25 to 40 km/h whereas Mumbai suburban railway (Central
Line) runs at an average speed of 30 to 50 km/h. Whereas the Ahmedabad BRTS
has an average speed of about 24 km/h.
Travel Time: An average trip length is observed to be higher in heavily populated
urban agglomerations where people travel to work with their residence located
in sub-urban areas. The higher the trip length of a commuter, the faster his
choice of modal transport will be.
Vehicle fuel consumption: Public transport systems use energy efficiently and
offer a cheaper substitute to the motorized transport system over the same
length of travel at a lower emission rate.
Reliability: Reliability is an important factor for selecting a transit system. Mass
public transport should have a higher frequency with longer hours of operation
and reliability in departures and arrivals. Delhi Metro had over 2400 train trips
in a day with over 69000 kms being run with a punctuality rate of over 99% in
43
2011.
n
n
n
n
43
Delhi Metro Press Release, August 15, 2011
Parameters for a
Successful Urban Transport System4

4. Travel Experience: Safety is one of the prime considerations resulting in shift in the
modal choice of commuters. Safety along with security in terms of crime rates and
the risk of an injury and death is a basic requirement for commuters. A public
transport with a high ridership or a train system with separate compartments for
women passengers will have a high patronage. Passengers also look for a
comfortable travel option, especially those shifting from the motorized transport
system. An effective customer service with service commitment, courteous staff,
passenger facilities also add to the travel experience of the commuters.
The uptake of a particular public transport system will depend on one or more of the
parameters which impacts the ridership for each mode of transport. A perceived overall
image of each mode also influences the choice of transit system. To prevent the commuter
from taking the car or two-wheeler from his home to the workplace, an urban transport
system should be designed such that the commuter should prefer using a non-motorized
transport option (viz. Walking / Cycle Rickshaw) over an intermediate public transit option
(viz. Auto Rickshaw / Taxi) to reach the metro station or the bus stop. Further, the rail system
and the bus system should cover all the routes having a high movement of people daily from
their home to the workplace.
44
Urban Transport System in Singapore
Before introducing the Mass Rapid Transit (MRT) system, Singapore concentrated on
improving the Singapore Bus Services (SBS) in the year 1973. It introduced schemes in
1974 to allow licensed busses to carry adult workers, school children and private hire
buses on monthly contracts to operate during peak hours. This helped in reduction of
load on the SBS during peak hours. To further ensure that SBS should operate efficiently,
Singapore introduced competition in bus services by introducing a second company,
Trans-Island Bus Service Pte Ltd (TIBS), in 1982. SBS and TIBS started using higher
capacity double-decker buses, introduced feeder services in new towns and converted
many services to one-man operations in the wake of competition.
A Comprehensive Traffic Study by Wilbur Smith and Associates in 1982 confirmed the
need for a MRT system over the existing bus system considering the increasing growth in
the city's population. The basic system of the MRT was fully completed in 1990 and
funded by the government. Singapore Mass Rapid Transit Ltd (SMRT) was set up in 1987
to operate a 19 km route on the MRT system with 14 stations in use.
With the introduction of the MRT, SBS had to abolish 22 bus services, adjust the route of
75 bus services and introduce 19 new services in 1988 whereas TIBS had to remove 2
services, re-route 10 bus services and add 6 new services to accommodate the change in
travel pattern of the people. In 1992-93 the MRT, SBS & TIBS were integrated with the
formation of Transit Link Pte Ltd. with fare integration, information integration, physical
integration and network integration so that the services could complement each other.
The integration had a positive impact on the operations of all the three services.
1

45
SBS Transit Website
46
SMRT Website
In 2003, SBS Transit started operating the North East MRT Line of the Mass Rapid
Transit system in addition to its existing bus operations and is expected to operate a 42-
km Downtown MRT Line with 34 stations which would start operations by 2013. In
addition to this, SBS transit currently operates about 250 bus services with a fleet of
45
close to 3,000 buses.
SMRT currently operates the North-South and East-West lines, with 53 stations covering
a total length of 93.2km, the Circle Line and its extension comprising of 35.4 km with 30
stations, an LRT system which includes approximately 7.8 km of elevated guide ways
46
stretching over 14 stations, 3000 taxis and more than 800 buses.

Sr. Parameters Delhi Mumbai Ahmedabad
No.
1 Population as per 2001 census 12.88 Million 16.43 Million 4.53 Million
for the Urban Agglomeration
2 Population as per 2011 census 16.31 Million 18.41 Million 6.35 Million
for the Urban Agglomeration
3 Compounded Annual Growth 2.39% 1.14% 3.45%
Rate of Urban Population
4 Geographical Urbanization Delhi has grown radially Mumbai showed an Ahmedabad showed a
patterns usingtemporal DMSP- over the periods elongated and complex and unstructured
OLS night-time satellite data disaggregated growth sprawl, with redensification
47
from 1992 to 2009 of urban areas
48
5 Average Trip Length in 2007 10.2 Kms 11.9 Kms 6.2 Kms
6 Existing Urban Transport
systems (2011)
lMajor Bus Services State owned Delhi State owned BEST State owned Ahmedabad
Transport Corporation is is the major Bus Municipal Transport
the major Bus Service Provider Service Provide Service
lMetro Rail About 190 Kms Network of - -
Metro Rail system within the
UA operated by Delhi Metro
Rail Corporation with 142
stations with ridership of less
than 2 million persons per day
lBus Rapid Transit System 5.8 Kms of Pilot Bus Rapid 45 Kms of operational Bus
Transit System - Rapid Transit System with
ridership of about 0.13
million persons per day
lSuburban Railway Circular Railway of about About 200 Kms of -
37 Kms with limited passenger elongated suburban rail
services available during peak system within the UA
hours operated by Indian Railway
with about 94 stations with
ridership of about 7
million persons per
day
7 Under Construction Urban
Transport systems (2011)
lMetro Rail About 108 Kms of Metro About 11 Kms of Metro
Rail under construction as Rail under construction
a part of Delhi Metro Phase III in Mumbai and about -
11 Kms in Navi Mumbai
lMono Rail - About 20 Kms of Monorail
System under construction -
lBus Rapid Transit System - - About 44 Kms of BRTS
projects under construction
with assistance under
JNNURM
8 Urban Transport systems under
consideration (2011)
lMetro Rail About 100 Kms of additional Additional Metro Rail Metro Rail network of about
Metro Rail network under network of about 148 60 Kms from Ahmedabad to
consideration as a part of Kms under consideration Gandhinagar and about 150
Delhi Metro Phase IV for Mumbai and about 100 Kms within Ahmedabad
Kms for Navi Mumbai
lMono Rail About 90 Kms of Monorail About 135 Kms of additional About 30 Kms of Mono
system under consideration Mono Rail system for Rail system under
Mumbai UA consideration
47
Assessing urbanization patterns over India using temporal DMSP-OLS night-time satellite data, Current Science, vol.
100, No. 10, 25 May 2011
48
Parameters of Urbanization and Urban Transport System in select cities

It is evident from the analysis presented in this paper that India's urban transportation
sector is at the crossroads of development. While the need of the hour is a fully integrated
solution for transportation at the city level, a supporting eco-system to successful
implementation must be also developed to complement the large opportunities. Co-
ordination between state, central and local bodies, strong legislation, financing and well-
planned transportation solutions will only aid continued growth and making living a lot
easier for India's urban population.
Acknowledgement
For the purposes of this study, we relied on KPMG industry knowledge. We also spoke with a
number of transportation & logistics industry stakeholders as well as private investors,
whom we would like to thank for their time and insights.
This paper has been authored by Kapil Bellubi and Vivek Beria of KPMG in India. We would
also like to express our gratitude to the brand and design team of KPMG and FICCI for their
guidance and support.
1
Conclusion
5

© 2012 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of
independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
The KPMG name, logo and “cutting through complexity” are registered trademarks or
trademarks of KPMG International.
The information contained herein is of a general nature and is not intended to address the
circumstances of any particular individual or entity. Although we endeavour to provide
accurate and timely information, there can be no guarantee that such information is accurate
as of the date it is received or that it will continue to be accurate in the future. No one should
act on such information without appropriate professional advice after a thorough
examination of the particular situation.

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