This document discusses various financing mechanisms for public transportation systems. It provides examples from Assam State Transport Corporation and Bangalore Metropolitan Transport Corporation. ASTC revived its bus fleet through government funds and loans. It also allowed private bus operation under its banner. BMTC generates additional revenue through integrated passenger terminals combined with commercial real estate, called Traffic and Transit Management Centres (TTMCs). TTMCs have provided office, retail and parking space, generating over 125 crore rupees annually in rent. BMTC has also adopted other initiatives like online payment systems and strategic depot provision to improve financial sustainability of public transportation.

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PRIYANKA VASUDEVAN
ALTERNATE FINANCING
MECHANISMS: INNOVATIONS

2. FINANCING PUBLIC TRANSPORT
• Financing public transport is important to ensure that the quality of the
services provided are delivered at maximum efficiency, to optimise the costs
and revenues.
• One of the ongoing policy debates has been focused on how to find the
necessary investment for the provision, operations and maintenance of
growing transport supply needs.

3. Increasing fuel, fleet and
staff costs are placing
increasing pressures on
the financial
performance of transport
systems.

4. Fares cannot be raised at
will to increase revenues,
affecting the ability to
finance public transport
operations.

6. ASSAM STATE TRANSPORT CORPORATION

7. KEY PERFORMANCE INDICATORS
Parameters Project Cost
(crore Rs.)
Fleet Size (number of buses) 2627
Average earnings per month (lakh Rs) 645
Average expenditure per month (lakh Rs.) 945
Kilometers operated per month (lakhs) 23
KMPL 3.39
Monthly Ridership (lakhs) 11
Fleet Utilisation (%) 84
Staff 5,400

8. ASTC’S REVIVAL PROGRAM
• Repaired 235 shutdown buses with
Government funds
• Replaced old buses in a phased manner
by purchasing 100 vehicles out of
Government funds and 200 vehicles by
obtaining loans from financial institutions
• Reduced employees by 2,000 through a
Voluntary Retirement Scheme

9. PRIVATE BUS OPERATION UNDER ASTC BANNER
• Initiated with 559 buses in 2001-02 and
grew to 1,790 buses in 2005-06.
• Annual earnings increased from Rs. 2
crore to 14 crore.

10. Source Income (Rs. in lakhs)
Hotels 132
Cinema Halls 5
Shops 4
Parking Facilities 24
Total 165
OTHER INITIATIVES

11. BANGALORE METROPOLITAN TRANSPORT
CORPORATION: LANDBANKING AND OTHER
EXAMPLES

12. TTMCs IN BANGALORE
In recent years, BMTC became one of the few public
transport agencies to operate at a profit. Despite its
success, BMTC faced two major challenges:
• Alternate sources of revenue generation to maintain
profitability and financial sustainability; and
• The provision of high quality support infrastructure to
improve the level of service for bus users.
Traffic and Transit Management Centres
(TTMCs)
This concept combines the development of
passenger terminals, with the creation of
commercial real estate space.

13. TTMCs IN BANGALORE
The TTMC concept consists of three main components:
• An integrated terminal with adequate facilities and amenities to cater to the
requirements of all user groups;
• A mixed-use development with retail, office space and other commercial
activity, to encourage people use bus for such activities.
• The provision of park-n-ride facilities to encourage the use of public
transport.
BMTC has constructed ten TTMCs between 2009-2014, with initial funding was
provided by JnNURM.

14. FINANCIAL DETAILS OF TTMCs
(Parwez 2013)
Sl No Location Project Cost
(crore Rs.)
Commercial Real
Estate Developed
(in sq. ft)
Average monthly rent
from commercial space
(Rs.)
1
Shantinagar A Block
103.78
2,82,731 12,77,919
Shantinagar B Block 94.655 8,95,000
Shanthinagar MLCP
Block
53,550 3,76,236
2 Koramanagala 64.34 3,10,785 6,81,504
3 Banashankari 31.23 1,09,215 15,15,490
4 Vijayanagar 56.6 1,65,799 24,27,228
5 Jayanagar 13.9 61,184 13,76,365
6 Whitefield 40.37 1,42,859 15,84,349
7 Domlur 17 77,849 1,57,210
8 Kengeri 37.5 1,09,779 2,56,700
9 Bannerghatta 5.01 12,932 19,798
10 Yeshwanthpur 89.5 2,27,634 20,12,121
Total 460.15 16,00,512 1,25,79,920

15. TTMCs IN BANGALORE: UPDATES
• LED displays for advertising in buses
• Leasing out space for installation of mobile
towers in BMTC’s 43 depots
• Auction space at kiosks to the highest
bidder: exponential increase in rents from
such kiosks from the earlier baseline figure
of Rs. 30,000 per month to over Rs. 1.5
lakh per month

16. OTHER INITIATIVES
• Online Payment System: reduces delays, simplifying
and expediting transactions with the Corporation’s
vendors; credit facility with vendors
• Karnataka Urban Infrastructure Development and
Finance Corporation Loans: lower interest rates, by
swapping existing loans to the KUIDFC Fund, resulting
in cash flow savings of 94.7 crore rupees per year
• Scientific Approach to Depot Provision: depot
augmentation is permitted solely when additional
capacity is required
• Purchase of New Buses and Tyres: based on long-
term lifecycle costs, rather than short-term purchasing
costs

17. A product of WRI Ross Center for Sustainable Cities
PRIYANKA VASUDEVAN
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