COMMENTS

Indian low cost urban mobility needs do not support private operators for city bus transport governed by fare regimes with both (babus & private bus operators) less interested in customer service than their own welfare.

But, this could apply to everything; not just to bus services.

As for BMTC's productivity indicators, and awards, I have my own views. What more needs to be said about it all considering the fact that they managed to get an award even for their TTMC's (check here).

Incidentally, BESCOM too figures fairly high in the merit list of electricity distribution companies across the country, which includes private players, as compared to the ASRTU (association of road transport undertakings) awards, which is only for public sector undertakings. For all of that, Mr Manivannan has repeatedly hinted that there is no future to retaining power distribution in government hands. And Delhi has shown the route too.

And, with privatisation, Delhi-ites are slowly beginning to accept the truer costs (which has gone up by over 50% over the past 5 years - check this), but for much better quality of supply, with even Arvind Kejriwal now toning down his aggression against the power companies. And, following the Delhi lead, all the other utilities across the country too are moving towards truer tariff regimes (though, the govt run ones are not able to match the quality parameters), and slowly the subsidy regime in the sector is set to get dismantled. Well, if the government feels that it needs to afford some concessions to the EWS, all it needs to do is to follow the "direct cash transfer" route through Adhaar.

Pray, why can't that happen with bus transport services? Incidentally, I happened to read the World Bank report, accessible here, once again, and I now begin to think there are enough grounds for a PIL. And, mind you it's Nov '05 report, and even after eight years, we are still debating the fundamentals.

And, for those who believe that a Committee is the answer, I must mention that there has been one in place from long - check here for more on that.

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@sanjayv

Agree that serious efforts are needed for a fare fixation committee to be an effective tool, but citizens generally complain & never act or force authorities to give in to such a demand. Even capitalist countries (including US) have subsidies for urban transport – competition does not necessarily fix everything, least of all urban transport as has been the experience worldwide.

GoI’s age-old & outdated policies also need changing urgently. In Bangalore’s context, due to extremely high levels of motorization, there would be very large revenues generated from vehicle & fuel taxation for state and central governments. Fuel tax is far more road-use oriented (i.e. higher the fuel sold within the city, more would be the use of roads within the city, & consequently, more the need for funding & improving public transport, NMT, pedestrian facilities, etc), but it accrues mainly to central government revenues. Proceeds from vehicle & fuel taxes are treated as general tax revenues for state & central governments. Fuel taxation has strong potential for use as a tool for local traffic demand management & improving services & facilities, but since the state /city do not have much control (since central govt budgets all such funds with an overall “aggregate” approach), a very useful instrument is rendered locally unavailable or minimally available.

Further, budgets allocated for public road transport & subsidy, road /pedestrian /NMT facilities (maintenance & improvements) are usually just a small fraction of the amounts collected as vehicle and fuel taxes and are not related to road use nor vehicle increases - both growth sectors. Municipal revenues (through property tax collection, etc) are grossly insufficient. Thus, whilst funds needed keep increasing, budgets available bear no relationship & are not directly aligned with the demand side (i.e. vehicle and fuel sales have no bearing on urban transport budget allocations).

Central & state govts dishing out funding in other ways (i.e. through state budgets and through national programs like mega-cities scheme, urban challenge fund and JNNURM recently) have all proved to be highly inefficient since none closely correspond to the demand side nor are used to improve urban transport in the best ways possible.

One possible way to rectify this would be to de-link vehicle and fuel tax revenues from state /central budgets (at least a fair percentage of it that is necessary locally for cities) and create a closed loop to fund city urban transport challenges. If separate annual budgets are created for each city, it could fund urban transport, pedestrian /NMT & road maintenance far more efficiently. This subject is of course beyond the decision making reach of states or cities since GoI’s rigidities are a formidable barrier to change – the problems really start from there.

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Seeing the above call on the Hasiru Usiru Yahoo-group, I immediately responded with:

Whatever, the government monopoly has to remain, right?

To this, KN responded with:
At least I don't think govt. monopoly has to remain - they are just irresponsible and haven't thought it fit to redesign the routes for over 30 years and there are several other short-comings- especially BMTC (formerly BTS).

However, there aren't many good examples of private bus operators either (the TVS example that you quote may be an exception). Those along the KA coastal belt are some of the worst examples - they are just after getting the max trips with max passengers packed in.

In either case, what's needed is a responsible service provider - govt or private. Not sure how that could be achieved or how the service provider could be made accountable and responsive to the customers' needs.

I went back with:
No TVS, nor any respectable business house, will come forward to operate the bus services given today's license-permit-control regime, in the name of the out-dated Contract Carriage Act, Stage Carriage Act, etc. It is only the small-time johnnies, who, together form their own mafia, opt to 'manage' the current situation, leading to the kind of services you have in Mangalore-Udupi areas, as also in Kochi, Kolkata, Delhi, almost everywhere. All the same, they still provide an essential service, which in many places is still better than that provided by govt operators.

Unfortunately, no state appears to have appreciated the need for the organised sector to be facilitated into entering as vital an infrastructure sector as public bus transport services sector yet, leading to the cities being burdened with the much costlier and disruptive options of METRO, BRT, etc. The bus mafia's are not very different from the auto mafia's, and serve the vested interests of the politicos perfectly, apart from the SRTC mafia's over whom the politicos preside (the earlier transport minister fitted the scene to perfection), and that is why the change hasn't happened so far.

Now, of course the private operators cannot run on losses, and if the 'socialistic' mandate is that bus operations should be subsidised, perhaps they have to be run by the state players (well, even if monopolies). But, a government order clearly states that "fixation of fares for special and high end buses (like Volvos) is left to the STUs based on 'market forces' ". So, why should the VOLVO operations remain the monopoly of BMTC? Is it to cross-subsidise the 'Janata' operations? But, the inefficient way they are operating, with empty buses chasing each other many a times, it doesn't look like they are making money there either, even with steep fare increases, and manipulation of the definition of 'stage' (check here). In addition is the deprivation of the aam aadmi of the services of at least 4 ordinary buses for every VOLVO.

So, do you now see a case for inviting the TVS types to take over the VOLVO services, at least? Once that happens, the comparisons will be inevitable, and the BMTC will also have to improve its performance. Otherwise, they will go down like AIR-INDIA ( If Modi becomes the PM, he will close it down; and, for that one reason at least, I hope he does :))) ). But, of course, TVS will want the two earlier mentioned Acts repealed, and a proper regulatory mechanism put in place.

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The govt must take all classes to account. Its not fair to raise the bus fair every often. Everyone cant offered it.

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Alternate fuel such as CNG like in Delhi and Mumbai, also Hydrogen like in European cities could help in maintaining affordable fares.

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