ITDP India

Promoting sustainable and equitable transportation worldwide

Budget 2024: A Wishlist for Sustainable Transport by ITDP India

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As the Finance Minister of India prepares to announce the new budget for the country shortly, our diverse team has brainstormed a list of budgetary interventions we wish to see in the upcoming budget and beyond.  

In a post-pandemic world, as our cities grow more rapidly than ever, facing various climate change impacts, our wishlist aims to put ‘sustainability’ at the forefront of our transport and urban policies. Here is a list of five action areas where we seek to see increased focus and budget prioritisation. 

1. Ensuring allocation of Transport Budgets towards Sustainable Mobility  

What we want: At least 50-60% of the total transport budget to be allocated for sustainable mobility projects including public bus transport, e-buses, walking, cycling, micro-mobility, e-shared passenger and freight across Indian cities. 

Why: As per 2011 Census, nearly 72% of trips in India are on foot, cycle, and public transport. It is only fair that the transport budget reflects this proportion, ensuring that sustainable transport receives the attention and funding it deserves. 

2. Prioritising More Buses, Better Buses, Greener Buses 

What we want:  A 15-fold scale-up of national programs like the PM E-Bus Sewa Scheme to ensure More Buses, Better Buses, and Green Buses in all cities with financial support. Financial support should be provided to public bus operators in the form of viability gap funding on Gross Cost Contracts (GCC). 

Electrification of private sector buses, which make up for 93% of buses in India, presents an opportunity for reducing emissions that can be facilitated through lower interest rates for loans, longer loan tenure, and a leasing model. 

Why: Public and private bus transport forms the backbone of Indian transportation, catering to 30 crore daily passenger trips. It is crucial to improve both the quality and quantity of both the public and private buses through prioritised investments in better and greener options.  

With ~20 lakh public and private buses in India. Even if just one-fifth of these buses go electric, it could reduce 85 lakh tonnes of CO2 emissions per year– helping India achieve its 2070 Net Zero vision.  

3.Creating Walking and Cycling Friendly Indian cities  

What we want: Specific budgetary allocation and a national commitment towards creating walking and cycling-friendly streets across Indian cities. All states should be guided towards adopting state-level street design guidelines, policies, and action plans. These must be followed when taking up upgradation or street development work.  

Why: A robust walking and cycling infrastructure provide a highly cost-effective means of mitigating greenhouse gas emissions, improving public health, saving money for residents, increasing access to opportunities and improving public safety in cities. For this very reason, world over attempt is being made to increase walking and cycling. But in India, already 48% of the population commutes by walking or cycling, as per Census 2011. This goes to show that we have a strong demand for walking and cycling. 

Despite the clear and significant benefits that investments in walking & cycling infrastructure bring to pedestrians, cyclists, and society at large, this is not adequately reflected in the transport budgets or actions of national, state, and city agencies. The lack of prioritisation for safe walking and cycling infrastructure has been a persistent issue across Indian cities and should be a key focus moving forward.

4.Connecting the Dots: Seamless Integration

What we want: Budget allocation for cities with ongoing and upcoming metro projects to ensure seamless physical, information, and fare integration. The integration should be based on the local area plans, between different modes of transportation including bus, metro, suburban rail, walk, and cycle within a 500m radius of any station area, to encourage a modal shift to sustainable modes of transport.  

Why: Seamless integration plays a crucial role in making people shift to sustainable transport.  The journey must be convenient, seamless, and connected right from planning, boarding, alighting, payments etc. Unless these are integrated, private vehicle users may not shift to sustainable transport modes. 

5. Pricing Pollution

What we want: Provide policy, technical, and budgetary support to states and cities towards adopting parking policies, implementing parking management measures, and setting up low emission zones with a mobility component. These measures can discourage the use of polluting vehicles through pricing and reduce traffic congestion. The national government could encourage cities to develop newer revenue sources by pricing parking and polluting vehicles. 

Why: As per the World Air Quality Report 2023, India is the third most polluted country in the world. Several Indian cities like Delhi, feature in the infamous list of most polluted places in the world. There is an urgent need for separate budget allocation to implement strategies that tackle vehicular pollution and congestion which can lead to lower costs related to road maintenance, healthcare, and fuel consumption. 

Cities can also generate new revenue sources by pricing parking and implementing charges for polluting vehicles. This revenue can be reinvested in sustainable urban mobility projects. 

But how can these be effectively rolled out ensuring accountability for cities? Well, here are some suggestions:  

a. Set up a National Sustainable Mobility Mission, empowered to allocate funds under an Urban Transport Fund, monitor projects, and fastrack sustainability mobility projects across state/cities.  

b. Adopt a result-oriented approach for every project undertaken via the National Sustainable Mobility Mission. For every project, a framework is to be adopted, and budget should be specifically allocated within project costs for ‘Impact assessment of infrastructure’ and performance audit of programs to ensure public money is spent wisely benefitting large masses. 

c. Empower those cities that have an operational Unified Metropolitan Transport Authority (UMTA) or a Green Mobility Cell to avail the budgetary support from the national mission. These entities should be empowered legally and financially to facilitate coordination, planning, and execution of sustainable transport initiatives among various agencies.  

d. Set up a Green Mobility Data Centre for data-driven decision-making. These data-centres can collect granular and gender-disaggregated mobility data, analyse the same. The collected data can be used for planning, design, budgeting, management, enforcement, and performance evaluation of all mobility interventions and initiatives. 

e. Empower the states and cities to revise existing Motor Vehicle Acts, Municipal and District Acts with rules for prioritising pedestrian-friendly infrastructure to avail the budgetary support. Cities will have to ensure that all upgraded or newly laid out street development will be completed with the provision of safe, continuous, and comfortable pedestrian infrastructure as per the national street design guidelines. 

f. Create a national platform for technical experts who can especially support Tier 2 and Tier 3 cities in piloting and scaling up infrastructure projects. This will ensure high quality planning, design, and implementation of the projects across India. 

g. Mandate state and city transport to make allocations in transport budgets that benefit women, gender minorities, and vulnerable users. It’s enforcement can be done by setting up Inclusive Mobility Committee and/or Inclusion officers. Initiatives such as women-led transport cooperatives for ride sharing services, measures to ensure travel safety, training for these users in roles like drivers, mechanics and engineers should be explored 

As we began compiling our wish list, we realised that what we truly desire is a return to prioritising the basics. We seek strong national commitment to fulfil the 2030 sustainable mobility vision for India, where all cities have: 

A– Accessible and safe streets for all. 

B– Buses near everyone, everywhere, on time. 

C– Congestion and pollution free cities. 

Written by

Team ITDP India

Accelerating Urban Transport Reforms for Effective City Level Action

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As published in Observer Research Foundation

In the last decade, as India’s urban population surged by 26 percent,1 the use of personal motor vehicles (PMV) grew by 138 percent.2 India took 60 years (1951-2008) to reach 105 million registered vehicles and added the same number of vehicles in the subsequent six years (2009-2015), which put pressure on existing road networks and transport systems.3 The current urban transport governance framework is fragmented, with different agencies managing different aspects of the sector; in Delhi alone, over ten agencies handle transport, including three municipal corporations, the Public Works Department (PWD), national and state highways, the Delhi Transport Corporation (DTC), and the Delhi Integrated Multi-Modal Transit System Limited (DIMTS).4  Such fragmentation leads to a lack of coordination and inefficiencies in project implementation and timelines.

There is an urgent need for reforms in India’s urban transport governance frameworks to ensure effective city-level action that can keep pace with the rapid population growth and its evolving needs. Such reforms will also require interventions at the national, state, and city levels.

National-Level Interventions: Setting the Vision and Funding Mandates 

The National Urban Transport Policy (NUTP), issued by the Ministry of Urban Development (MoUD) in 2006,5 was aimed at bringing about comprehensive improvements in urban transport services and infrastructure. The NUTP transformed India’s transport priorities, focusing on the mobility of people rather than vehicles and paving the way for schemes and programmes to support states and cities in improving urban mobility, such as the Jawaharlal Nehru National Urban Renewal Mission (JNNURM),6 the Smart Cities Mission, 7 and Faster Adoption & Manufacturing of Hybrid and Electric Vehicles (FAME I and II).8 However, the NUTP lacked a definitive vision with specific goals as well as a mandate to enable the funding of state- and city-level initiatives. Consequently, many states and cities struggled to meet the increasing demand for mobility. The approximately 30,000 buses that were introduced across India’s urban districts through schemes like JNNURM 9 10and FAME11 fell significantly short of the 200,000 requirement.12 Therefore, the NUTP highlights the need to establish a clear vision for urban mobility and mandate sufficient funding allocations in order to accelerate reforms.

The Cycles4Change,13 Streets4People,14 and Transport4All15 projects, which were initiated at the national level by the Ministry of Housing and Urban Affairs (MoHUA) in 2021, demonstrated a welldefined vision for urban mobility. The programmes have sought to address funds allocation, peer learning, and institutional synergy.

Utilising a participatory approach, the initiatives provided step-bystep guidance to cities to improve their walking, cycling, and public transport infrastructures. They also included a funding component to test solutions in top-performing cities, fostering intra-state competition and enabling city governments to effectively scale up transformation. The effort led to Healthy Streets Apex Committees being formed in over 30 cities, which set goals for projects and programmes to promote walking and cycling.16

Simultaneously, Transport4All Taskforces comprising government and non-government stakeholders were created in 100 cities to improve public transport systems.17 The projects also facilitated knowledge exchange among cities, enabling them to learn from the experiences of others within and outside their state. This collaborative approach led to a rapid improvement in urban mobility infrastructure and services. 

Consequently, 15 cities adopted Healthy Streets Policies to establish a framework towards prioritising walking and cycling. Nineteen cities also developed three-year action plans that laid out goals and strategies to achieve the Healthy Streets vision.18 The plans included strategies and budgets for the city-wide expansion of walking and cycling initiatives, and clearly identified roles and responsibilities of various city agencies towards implementing these strategies. By fostering competition and knowledge exchange as well as providing cities with a clear roadmap and budget for improving sustainable mobility, the initiatives have inspired more than 100 cities to take proactive action towards transforming urban transport in their jurisdictions.19

State Level: Need for State Funding and City-Level Action Mandates

Some states have attempted to address specific aspects of mobility through policies—for example, on electric vehicles or those for transit-oriented development—which have independent agendas and visions. A holistic approach to sustainable mobility through a state-level Sustainable Urban Transport Policy (SUTP) that can guide city-level policies and projects could help these policies be more effective. Such an overarching policy can standardise regulations, allocate the required financial resources to ensure on ground implementation, and facilitate knowledge exchange to drive sustainable mobility initiatives. It can also mandate and monitor city-level actions, ensuring accountability and consistency across jurisdictions.

A few states in India are paving the way for effective urban transport initiatives in cities. In 2017, the Maharashtra Urban Development Department released the draft Maharashtra Urban Mobility Policy.20 Applicable to all urban areas in the state, the policy envisioned modes of transport that are safe, reliable, sustainable, and accessible for all citizens. The policy also included tangible metrics for infrastructure implementation that could measure its success.

To support cities in implementing sustainable mobility projects on ground, the Government of Karnataka set up the State Urban Transport Fund (SUTF),21 administered by the Directorate of Urban Land Transport. Mobilised from three sources—a 1-percent cess on Motor Vehicle Tax (MVT), a 2-percent cess on property tax, and budgetary support from the state—the fund promotes the public transport system in cities by assisting in the construction of city transit infrastructure, implementing non-motorised transport (NMT) systems, and developing projects and feasibility study reports, among others. In 2021, the Tamil Nadu Transport Department secured a loan of INR 1,600 crore (approx. US$200 million) from the KfW Development Bank to procure 2,000 e-buses by 2025 for three cities, including the capital, Chennai, to improve the quality of public transport in these cities.22 Large procurements of electric buses, which are expensive and often beyond the budgets of many cities, could be challenging without state support.

City Level: Need for an Institutional Framework, Policies, and Funding

  1. Setting up robust institutional frameworks The NUTP recommended setting up a Unified Metropolitan Transport Authority (UMTA)23 in all cities with a population of over one million. UMTAs were envisioned as nodal agencies for all mobility initiatives in a city in order to oversee timely implementation even with the involvement of multiple agencies. They can ensure transparency of decisions across different departments and the accountability of agencies responsible for project delivery. However, very few cities have established a functional UMTA due to the lack of regulatory mandates to form such an entity. 24The Chennai Unified Metropolitan Transport Authority (CUMTA) Act, which was passed in 2010 25and has been operational since 2019, has brought key agencies and stakeholders together under a single roof, ensuring the seamless integration and implementation of all transport projects across various modes in the city. As a coordinating body, it has helped integrate transport planning and decision-making in Chennai. Karnataka also formed a Non-Motorised Transport Agency (KNMTA) in 2019 to implement a public bicyclesharing system in Bengaluru, alongside undertaking other NMT activities in the state.26 Similarly, Pune has set up taskforces and cells to oversee the planning, implementation, and maintenance of various NMT initiatives, including27 a participatory NMT Cell to support the transformation of streets across the city.28
  2. Adopting progressive policies and plans There is a need for specific policies and roadmaps that address various aspects of sustainable mobility in cities, including active transport infrastructure for walking and cycling, public transport, parking management, transit-oriented development, low-emission zones, and electrification. These policies must embed the principles of sustainable mobility into the city’s transport-related decision making. At present, Indian cities lack the processes that could enable data-based decision-making. Well-designed policies and roadmaps with clear, actionable, measurable targets can help cities monitor their successes and shortcomings, hold relevant stakeholders accountable for implementation, and ensure data-driven decision-making. For instance, Chennai and Pune have adopted urban mobility policies that prioritise walking, cycling, and public transport. Starting in 2014, Chennai adopted India’s first NMT policy, which inspired Pune and Pimpri-Chinchwad to adopt the same.29 In 2016, Pune adopted India’s first progressive parking policy,30 inspiring Chennai to also start a similar exercise. These policies have initiated a move towards sustainable mobility, created best practices and benchmarks, and inspired other cities
  3. Setting the right budget Cities remain at the forefront of implementing transport policies and projects, as they have a better understanding of their unique challenges and opportunities compared to other levels of government. Therefore, they are best positioned to efficiently allocate resources to meet ever-changing urban demands. City-level budgets are critical for public transport services. City-level budget allocation also reduces the burden on state and national governments. For example, the twin cities of Pune and PimpriChinchwad have consistently allocated at least 25 percent of their annual transport budget for the last five years towards improving walking, cycling, and public transport infrastructure.31 Similarly, the Greater Chennai Corporation launched the Chennai Mega Streets Programme 32 in 2020 to create a city-wide network of streets that have a lifespan of at least 30 years, with funds allocated in the 2020 Tamil Nadu budget for the preparation of detailed project reports (DPRs) and commencement of work. 33

Addressing the complex challenges of urban transport governance demands concerted efforts at multiple levels of governance, from overarching national policies to city-level initiatives. The national government needs to set the right vision, backed by strong funding mandates for states and cities, while facilitating peer-topeer learning between cities and states to accelerate transformation. As demonstrated in Maharashtra, Karnataka, and Tamil Nadu, it is critical for states to support cities in implementation through policy and funding and mandating city-level action. Additionally, cities need to set up strong institutions such as CUMTA, adopt progressive policies as in the case of Pune, and allocate financial resources to meet ever-changing urban demands to ensure effective action.

Learning from successful experiences can pave the way for sustainable, efficient, and inclusive urban mobility systems. The journey to transform urban transport is long, but with the right policies, funding, and city-level action, it is a goal that could prove to be within reach.

Written by

Sivasubramaniam Jayaraman, National Lead and Senior Programme Manager in charge – public Transport system and TDM

Vaishali Singh, Manager – Transport Systems and Electric Mobility

  1. World Bank, “Urban Population (% of Total Population) – India,” 2022,
    https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=IN ↩︎
  2. Ministry of Road Transport and Highways, Government of India, “Road Transport Yearbook(s), 2008,
    2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016,” https://morth.nic.in/road-transport-year-books ↩︎
  3. Ministry of Road Transport and Highways, Government of India, “Road Transport Yearbook(s), 2008,
    2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016” ↩︎
  4. “Too Many Agencies Monitoring Public Transport in NCR, Need Revamp: Panel,” The Indian Express,
    August 29, 2013,
    https://indianexpress.com/article/cities/delhi/too-many-agencies-monitoring-public-transport-inncr-need-revamp-panel/ ↩︎
  5. Ministry of Urban Development, Government of India, National Transport Policy, Ministry of Urban
    Development, New Delhi, 2006, https://mohua.gov.in/upload/uploadfiles/files/TransportPolicy.pdf ↩︎
  6. Ministry of Urban Development and Ministry of Urban Employment and Poverty Alleviation,
    Government of India, Jawaharlal Nehru National Urban Renewal Mission, Overview, New Delhi,
    https://mohua.gov.in/upload/uploadfiles/files/1Mission%20Overview%20English(1).pdf ↩︎
  7. Smart Cities Mission, “Vision of Smart Cities Mission,” Ministry of Housing and Urban Affairs,
    https://smartcities.gov.in/ ↩︎
  8. Ministry of Heavy Industries, Government of India,
    https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1942506 ↩︎
  9. K.C. Sivaramakrishnan, “Urban Transport: A Bus to Nowhere,” The Economic Times, April 20, 2009,
    https://economictimes.indiatimes.com/view-point/urban-transport-a-bus-to-nowhere/
    articleshow/4422393.cms?from=mdr; Ministry of Urban Affairs, Government of India, “Procurement
    of 10,000 Buses and Ancillary Infrastructure,” 2013. ↩︎
  10. Ministry of Urban Development, Government of India, “Recommendatory Urban Bus Specifications –
    II,” 2013, https://mohua.gov.in/upload/uploadfiles/files/Urban-Bus-Specifications-II.pdf ↩︎
  11. Ministry of Heavy Industries, Government of India, “Status of Sanction of Electric Buses Under FAME
    India Scheme II,’ Ministry of Heavy Industries, https://dash.heavyindustries.gov.in/dhieb ↩︎
  12. Calculated by ITDP India ↩︎
  13. Ministry of Housing and Urban Affairs, Government of India, “India Cycles for Change (IC4C) Challenge,”
    https://smartcities.gov.in/India_Cycles_for_Change ↩︎
  14. Ministry of Housing and Urban Affairs, Government of India, “Streets for People Challenge,”
    https://smartcities.gov.in/Streets_for_People_Challenge ↩︎
  15. Ministry of Housing and Urban Affairs, Government of India,
    https://www.pib.gov.in/PressReleasePage.aspx?PRID=1874732 ↩︎
  16. ITDP India, “10 Things that Shaped Out 2022,” https://www.itdp.in/itdp-indias-year-end-roundup/ ↩︎
  17. Ministry of Housing and Urban Affairs, Government of India,
    https://www.pib.gov.in/PressReleasePage.aspx?PRID=1874732 ↩︎
  18. Ministry of Housing and Urban Development, Streets for People, Pathways of Change from India’s Smart
    Cities, New Delhi, 2023,
    https://smartcities.gov.in/sites/default/files/2024-03/Street%20Compendium%202023%2018-12.pdf ↩︎
  19. Ministry of Housing and Urban Affairs, Government of India,
    https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1739905; Ministry of Housing and Urban
    Affairs, Government of India, https://pib.gov.in/PressReleasePage.aspx?PRID=1790637; Ministry of
    Housing and Urban Affairs, Government of India,
    https://www.pib.gov.in/PressReleasePage.aspx?PRID=1874732 ↩︎
  20. ITDP India, “Maharashtra Urban Mobility Policy,”
    https://www.itdp.in/maharashtra-urban-mobility-policy/ ↩︎
  21. Directorate of Urban Land Transport, “State Urban Transport Fund (SUTF),” Urban Development
    Department, Government of Karnataka,
    https://dult.karnataka.gov.in/69/state-urban-transport-fund-%28sutf%29/en#:~:text=The%20
    Directorate%20of%20Urban%20Land,support%20from%20Government%20of%20Karnataka. ↩︎
  22. Julie Mariappan, “Tamil Nadu Receives Rs 1600 Crore from German Aid Agency,” The Times of India,
    September 27, 2019,
    https://timesofindia.indiatimes.com/city/chennai/tamil-nadu-receives-rs-1600crore-loan-fromgerman-aid-agency/articleshow/71319544.cms ↩︎
  23. Ministry of Urban Development, Government of India, National Transport Policy 2006. ↩︎
  24. Dhaval Desai, “Lost in Transit: Unified Metropolitan Transport Authority (UMTA),” Observer Research
    Foundation, January 8, 2022,
    https://www.orfonline.org/research/lost-in-transit-unified-metropolitan-transport-authority-umta ↩︎
  25. Government of Tamil Nadu, “Chennai Unified Metropolitan Transport Authority Act 2010,”
    https://www.indiacode.nic.in/bitstream/123456789/13110/1/cumta_act.pdf ↩︎
  26. Directorate of Urban Land Transport, “Karnataka Non-Motorised Transport Agency (KNMTA),” Urban
    Development Department, Government of Karnataka, https://dult.karnataka.gov.in/127/knmta/en ↩︎
  27. ITDP India, “Chennai Non-Motorised Transport Policy,” ITDP India,
    https://www.itdp.in/maharashtra-urban-mobility-policy/https://www.itdp.in/resource/chennainon-motorised-transport-policy/#:~:text=The%20Chennai%20Corporation’s%20Council%20
    adopted,greenways%20and%20other%20NMT%20facilities ↩︎
  28. Pune Municipal Corporation, Pune Smart City, Pune’s Sustainable Transport Journey, Pune, 2021,
    https://www.itdp.in/wp-content/uploads/2021/02/Punes-Sustainable-Transport-Journey.pdf ↩︎
  29. ITDP India, “Chennai Non-Motorised Transport Policy,”
    https://www.itdp.in/maharashtra-urban-mobility-policy/https://www.itdp.in/resource/chennainon-motorised-transport-policy/#:~:text=The%20Chennai%20Corporation’s%20Council%20
    adopted,greenways%20and%20other%20NMT%20facilities ↩︎
  30. Pune Municipal Corporation, “Public Parking Policy 2016,”
    https://www.pmc.gov.in/sites/default/files/project-glimpses/PMC-public-parking-policy-Englishrevised-March2016-Final.pdf ↩︎
  31. Keshav Suryanarayan, “Pune Leads India Towards a Sustainable Future,” ITDP India, January 2020,
    https://www.itdp.org/wp-content/uploads/2020/01/Pune-Leads-India-Toward-a-SustainableFuture-ITDP.pdf ↩︎
  32. Komal Gautham, “Greater Chennai Corporation Fast Tracks Mega Streets Project,” The Times of India,
    July 15, 2022,
    https://timesofindia.indiatimes.com/city/chennai/corpn-fast-tracks-mega-streets-project/
    articleshow/92885712.cms ↩︎
  33. “Chennai’s Streets for People: The Journey,” ITDP India, February 29, 2020,
    https://itdp.in/chennais-streets-for-people-the-journey/ ↩︎

How to create impactful national programmes – Lessons from the India Cycles4Change and Streets4People Challenges

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Four years. 

Three steps—Test, Learn, Scale.

Two national Challenges. 

One mission—to support cities across India to create Healthy Streets—streets that prioritise walking, cycling, and public transport.

With the wrap-up of the India Cycles4Change and Streets4People Challenges with the Smart Cities Mission (SCM), Ministry of Housing and Urban Affairs (MoHUA) in January 2024, we look back at the origin and impact of the two programmes. We also present five key lessons from the experience which can help shape any similar efforts to transform our cities at scale. 

Let’s go back to where it all began. 

When the COVID-19 pandemic hit, all our lives turned upside down, and people HAD to adapt to survive. Amidst this chaos and uncertainty, we noticed something remarkable—people flocked to the streets to escape the four walls of their homes. Not only were they reclaiming their streets for fun and socialising, but people were now walking and cycling to access essential goods and services!

And that got us thinking—can we use this moment to get cities to create people-centric streets that could enable healthy lifestyles, and pave the way for a green recovery from the pandemic? 

The birth of the Challenges and its impact

Enter series two of the Urbanlogue webinars, launched by ITDP India in collaboration with the SCM, to provide expertise and spur conversations on best practices for travel and health in a post-COVID era. Over 5500 city officials attended these sessions to understand topics including COVID-safe public transport solutions, the need for street interventions to expand space for cycling and walking, and digital innovations for formal and informal public transport.

 

But talking wasn’t enough. We needed to see on-ground action.  And so, the India Cycles4Change and Streets4People Challenges were born. Launched by the SCM and ITDP India, these two Challenges aimed to support cities in transforming their streets into Healthy Streets in a holistic step-by-step manner. Cities were excited about this initiative and to our pleasant surprise, we had a whopping 117 cities signing up for these Challenges! There began India’s Healthy Streets Revolution.

Fast forward four years, 15 cities have displayed exemplary efforts and innovative solutions in their Challenge journey, and emerged as the Challenge Champions! These cities pushed boundaries and implemented unique ideas across three pillars—Action (infrastructure pilots), Foundation (institutional changes like policies, committees, and cells), and Communication (campaigns, consultations, and outreach). But the true force behind the success of the Challenges—every single participating city who contributed in different ways, from small-scale ideas to large-scale implementation, doing whatever they could do given their context.

To check out the entire journey of these cities, the impressive work done by them, and their way forward, check out our recent publication ‘Transforming Lives With Healthy Streets: Unravelling The Journey Of Creating Healthy Streets In Indian Cities’

Our learnings from the process

This journey, however, brought a lot of uncertainties that our core team—a six-member team doing the technical and coordination work—had to adapt to constantly. In such moments, as Dory from the movie ‘Finding Nemo’ said, we just kept swimming, and kept our eyes on the prize—supporting cities in creating Healthy Streets! 

Here’s what we learnt from the process: 

  1. Set the right expectations – We quickly realised that a nationwide Challenge approach was an effective tool to mainstream the conversation about a topic—Healthy Streets in this case. But, when it comes to implementation, cities were at different starting points with respect to their understanding, capacity, infrastructure, ecosystem etc. So, expecting the same level of results from all of them would have been unfair. Our goal was to get city officials to understand the concepts to at least start talking about Healthy Streets and the importance of prioritising them in their cities. By calibrating the expectations, we were able to achieve this by the end of the Challenges.
  2. Enable the right ecosystem – No matter how great the ambition to drive change, nothing is possible without the right kind of support. We saw how committed and proactive city leaders inspired action and were instrumental in getting things done. Not just that, the cities with a network of strong local partners—civil society organisations, non-governmental organisations, resident welfare associations, Bicycle Mayors, etc—consistently surpassed expectations because of their unwavering support in driving the work forward.
  3. Ensure collaboration between multiple departments – Through the Challenges, we actively worked with the Municipal Corporation and Smart City Limited who took the lead in each city. Across the country, cities that stood out and implemented great infrastructure had one secret ingredient—engaging with multiple departments to ensure coordinated action and support for the project. Building the support and capacity of these various departments—including others like the Traffic Police and the Planning and Development Authority—is the only way Healthy Streets projects can be implemented holistically. 
  4. Establish a robust data collection and monitoring system – While cities worked towards the actions expected of them through the Challenges, they faced a major gap in setting up processes for data collection and monitoring. In addition to the technical guidance and resources we provided, supporting cities was crucial—to prioritise this action, identify a nodal staff person, and build their capacity to work with data.
  5. Promote behaviour change – Through the Challenges, cities were introduced to the power of campaigns. Cities went all out in hosting social media campaigns, Open Street events, and other events like walkathons, cyclothons, cycle rallies, etc. to mainstream walking and cycling among the public. But this by itself is not enough to get more people cycling. While one-off events are great for garnering public support, long-term campaigns with a lens of behaviour change, like the Cycle2Work campaign initiated by some cities, are the only way to nudge people to take up walking and cycling as a mode of commute. This is also necessary to ensure the infrastructure implemented by cities are used well—infrastructure and campaigns go hand-in-hand in ensuring successful Healthy Streets initiatives. 

Way Forward

We believe that the IndiaCycles4Change and Streets4People Challenges are an innovative step towards the larger vision of creating sustainable cities of the future. Cities have committed to continuing their efforts by identifying their short-term and long-term goals for the next three years, including plans to allocate budgets for Healthy Streets. We hope we can see many more cities embrace Healthy Streets and become lighthouse cities in the coming years!

Just like the Challenge cities, we also applied the TEST-LEARN-SCALE mantra in strategizing and developing the Challenges. We tested out this new format and gathered our learnings. Now, we can’t wait to strategize the next step—SCALE. We also hope that this format inspires other agencies and organisations, within the country and across the world. Stay tuned to see what comes next!  

Written by Smritika Srinivasan

Edited by Keshav Suryanarayanan

Empowering private bus operators to drive India’s e-mobility future through leasing of e-buses

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As published in Economic Times.

Imagine a scene: an Indian city stretches into the distance, the air crisp and clear. A sleek electric bus glides past, its silent hum a stark contrast to the sputtering diesel giants of the past. This vision, once a futuristic dream, is now closer than ever to becoming reality. However, a critical question remains – how can we incentivise private bus operators, the backbone of India’s bus transport network, to become active participants in this electric revolution? The answer lies in a powerful approach: leasing.

India’s bus landscape is vast, with about 18 lakh buses operating currently1, catering to over 30 crore daily passenger trips2. To achieve India’s ambitious 2070 net-zero vision, the electrification of buses is essential. Studies have shown that e-buses can significantly reduce emissions and propel the decarbonisation of the transport sector. 

Of these, the private sector owns and operates a whopping 93%. However, only a negligible fraction of these buses are electric. To achieve 100% electrification of the private sector by 2050, a massive leap is needed, with over 760,000 e-buses3.

The primary hurdle for private operators lies not in adopting the change in technology from diesel/CNG to electric buses but in the high upfront cost of e-buses compared to traditional diesel counterparts. This barrier, coupled with difficulties securing financing due to the perceived risks associated with new technology, can easily derail the transition. Leasing can be a game-changer, offering a practical and financially attractive solution for private players to embrace e-mobility.

Leasing of e-buses

The acceleration of e-bus adoption requires new business models to propel the transition. One such emerging model is leasing. In the lease model, the lessor (a bank/bus manufacturer/ rolling stock company, etc.) can provide the bus, including an Annual Maintenance Contract (AMC), battery replacements and insurance, while the lessee (the operators) can bear the staff, permit, and energy costs associated with operating an e-bus. Under the current model, where the buses are owned and operated by the private sector, the operators bear all these responsibilities, leading to significant losses during the first two years of operation and will be able to achieve the same profit margin as diesel buses only after four years. The lease model,

on the other hand, can offset the capital expenditure to financers while utilising the operational expertise of the private operators. 

By mitigating upfront costs and offering operational advantages, leasing removes a significant barrier for private players to enter the e-bus market. Widespread adoption of e-buses enabled by the leasing model can contribute significantly to India’s clean air and sustainability goals by reducing tailpipe emissions and fostering a cleaner transport ecosystem.

The financial and operational advantages of leasing

E-buses are more viable than diesel buses in the long run due to reduced energy consumption per kilometre travelled, cheaper cost of energy/fuel and fewer moving parts as compared to diesel/CNG buses. This lowers maintenance requirements and costs, thus resulting in overall lower cost per kilometre (CPK) over its lifetime. However, the high upfront cost of e-buses can create a significant initial financial burden for the operators. Leasing dismantles this barrier by spreading the cost of the e-bus over the lease term, significantly reducing the required upfront investment. This allows operators to conserve capital for core business operations and growth initiatives. E-buses require a minimum lease period of 9 years to make them financially viable, with a lease rent ranging from INR 1.5 – 2.5 lakh per month. With leasing, operators can earn around INR 4.5 per km – matching current profits.  

Figure: Cumulative and year-on-year profits (in INR per km) for owning a diesel vs leasing an e-bus4

The profits made due to e-bus transition can be shared to create lease models that are more attractive for financers, ensuring estimated profits for the lessor to the tune of INR 0.5 – 2 crore over a 12-year life of the bus. 

The benefits of leasing extend far beyond just finances. Leasing models often come with comprehensive maintenance contracts, including battery replacements and insurance coverage. This frees up valuable time and resources for operators, allowing them to focus on core competencies like route planning, scheduling, and customer service. Additionally, lessors typically have expertise in e-bus technology and maintenance. Operators can leverage this expertise to ensure optimal performance and uptime of their e-buses, maximising efficiency and profitability.

Enabling the leasing of e-buses in India through regulatory support

There are several ways to ensure that the leasing model works in India: 

  1. Nudging financiers to provide buses on lease and developing risk-hedging mechanisms: The national government can promote e-bus leasing by nudging banks and financial institutions to provide e-buses on a leasing model, potentially through supportive policies. However, the risks associated with technological advancements, market volatility, and regulatory changes pose significant challenges. To mitigate these risks, the government must establish robust risk-hedging mechanisms. These mechanisms, which are currently underdeveloped, require comprehensive planning and collaboration between stakeholders, including policymakers, financial institutions, and bus manufacturers.
  2. Legalising transferable permits: State governments should consider legalising transferable permits to accommodate lease models where different entities can own and operate e-buses. This would allow permit holders to operate self-owned or leased e-buses on designated routes. Doing so will create a more flexible environment for private operators, allowing even small operators to transition to electric buses easily. 
  3. Flexible scheduling in permits: Regional Transport Authorities (RTAs) should consider permitting flexible trip schedules and extend service times by 2-3 hours to compensate for the additional charging time needed for e-buses. This is necessary because opportunity charging, while beneficial for extending the range of e-buses, requires additional time compared to traditional refuelling methods for CNG/diesel buses.  By doing so, RTAs can ensure e-buses have adequate charging time without disrupting service reliability. This would also ensure that the transition to e-buses does not compromise the convenience and accessibility of public transport.

Way Forward

Leasing offers a compelling path for private sector participation in India’s e-bus revolution. By overcoming the financial hurdles and leveraging operational expertise, leasing can empower private bus operators to embrace clean technologies and contribute to a more sustainable future. 

The path towards a greener future requires a collaborative effort involving all stakeholders. The government can play a vital role by creating a policy environment that incentivises leasing and simplifies the regulatory framework for e-buses. Financial institutions can develop innovative financing solutions tailored to the needs of the e-bus sector. Bus operators must be open to exploring new business models like leasing and actively seek partnerships with lessors with proven expertise.

As the silent hum of e-buses replaces the roar of diesel engines, we will know we are collectively paving the way for a cleaner and healthier tomorrow.

Written by Vaishali Singh, Manager – Transport Systems and Electric Mobility

  1. MORTH ↩︎
  2. Calculated by ITDP with inputs from BOCI and State Transport Undertaking Profile and Performance Reports ↩︎
  3. Estimated by ITDP India ↩︎
  4. The Road Ahead For Private Electric Buses In India, ITDP-CEEW-SGA, 2024 ↩︎

Persuade and they will do: Creating persuasive national programmes for cities

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The title of this article is a play on “Build it and they will come”, a phrase commonly used to describe the idea that if you create good projects, people will come to use them. This applies to much of the infrastructure cities create—well-designed Healthy Streets and vibrant public spaces can in turn bring more people to use them. Back in 2020, we launched two ambitious and experimental national programmes with the Smart Cities Mission—the India Cycles4Change and Streets4People Challenges. And we started by asking ourselves—how do we effectively persuade cities to do exactly that – build better streets?

In his pathbreaking work on persuasion, psychologist Robert Cialdini laid out six principles we can use to understand the two Challenges—as a national effort to persuade cities, their leaders, and their people to change their minds and their actions. We can then use this understanding to inform the design of other innovative programmes going forward. But first, we can start by seeing what the Challenges managed to achieve.

The impact of the Challenges

We wrapped up this four-year experiment in January this year. Of over 110 participating cities, 15 cities have emerged as champions of the two Challenges. While these cities have made the most progress across various factors, the efforts of the other cities have been nothing short of inspiring.

33 cities implemented over 350 km of improved footpaths and over 220 km of cycle tracks. Projects are underway to transform over 1400 kilometres of streets in 48 cities. In addition to implementing projects, cities have also institutionalised this change by setting up Healthy Streets Apex Committees and Design Cells, adopting Healthy Streets Policies, and developing detailed three-year action plans to continue this momentum.

We launched a comprehensive publication that documents detailed case studies of street transformation projects completed under the Smart Cities Mission, and learnings from their implementation. We’re very hopeful that this momentum will continue beyond the Challenges and that cities will go on to scale up their efforts rapidly in the coming years. 

As we brought the two programmes to a close at a national workshop last month and look back at the journey, one aspect stands out—the sheer scale of the effort from so many cities, their decision makers, engineers, urban designers, technical experts, and most importantly the people of these cities. How did the Challenges manage to make this happen? And how can this inform other programmes which also target city-level action? 

Using the six principles of persuasion

The psychologist Robert Cialdini published a book called ‘Influence: The Psychology of Persuasion’ in which he lays out six principles which can be used to be more effective when trying to persuade others to take a specific action.

The six key principles Cialdini identified are Authority, Reciprocity, Consistency, Social Proof, Liking, and Scarcity. Let’s see how each of them plays out in the context of the Challenges.

Authority 

Right from the get-go, the Challenges had the full support of the national Mission behind them. This was crucial to ensure cities took up the opportunity and maintained their momentum across the different stages of the Challenges. Having strong technical experts like ITDP India as a partner anchoring the programmes and several other experts as jurors also ensured the cities had access to credible and concrete guidance throughout the process. This helped build trust with the cities and helped get their active participation. 

Expert roundtables as part of national capacity building workshops

Reciprocity

At every step of the journey, we started by asking not what the cities could do, but asking ourselves what we could do for the cities, to make it easier for them to take action. We gave the cities various resources—bite-sized guides on various topics, easy-to-use templates, even a game to help cities understand how to create action plans—before asking the cities to act. In addition to all this, we also had the more tried and tested method of offering prize money to the top cities selected. Each of these had a role to play in how much effort the cities put in. 

Library of resources

Consistency

Expecting immediate and dramatic transformation from cities is asking to be disappointed. The goal was not to start sprinting and stop within a few feet gasping for breath, but to run a marathon. We broke down the actions cities needed to take, with monthly workshops along with resources to guide them on specific actions—one action after each workshop. In the spirit of an experiment, we urged cities to adopt a Test-Learn-Scale approach—try temporary and inexpensive solutions to improve their streets, learn from their experience and that of other cities, and scale these lessons into permanent infrastructure. With regular Open Street events and campaigns, the cities also gradually got their citizens on board with reimagining their streets. 

Actions in various stages

Social Proof

This principle was crucial. The Challenges were a unique mix of competition and collaboration. While cities were technically competing with each other to be selected as the top cities, we ensured that the cities build a strong culture of peer-to-peer learning by spotlighting the efforts of various cities through our workshops and site visits where other cities could learn from successful tests. We also created a progress dashboard of the cities so that cities and citizens could also look at how well their city was performing in comparison to others. 

Progress dashboard of cities

Liking

We can’t help it—we’re more likely to listen to the people we like. One of the main results of the programmes has been the creation of a strong community of champions for sustainable mobility. We heard heartening stories of officials from different cities reaching out to each other with questions, coming together to discuss ideas during workshops and in WhatsApp groups. We hope these relationships grow and they continue to inspire and motivate each other to make all our cities better. 

Creating a community of champions

Scarcity

Through a time-bound and stage-wise process, we also emphasised the urgency of action to the cities. Only the best of the cities could move to the next stages and continue to receive detailed technical guidance and support. This incentivised the cities to attempt all the necessary steps in each stage to make sure they could progress.

Persuasion is necessary, not optional

We designed the Challenges to get them to act quickly. And this is what we need as the nation grapples with the complex challenges of urbanisation, pollution, and climate change. Without persuasion, we risk momentum towards a greener future slowing down in the face of inertia and inaction. In India’s journey towards sustainable mobility, persuasion is not just desirable—it is a necessity. It can catalyse action, transform mindsets, and pave the way for a brighter, more sustainable tomorrow.

The journey of the cities will continue. Other national, state, and city-level programmes will be developed to prioritise sustainable mobility. And when they do, we hope they can build on these learnings and find other innovative ways to persuade and inspire cities to accelerate action.

Written by Keshav Suryanarayanan

Pimpri Chinchwad’s transformation: A story of perseverance and resilience amid urbanisation

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If there were a city in India ready to narrate an inspiring saga of transformation of its urban mobility, Pimpri Chinchwad would undoubtedly be at the forefront. Picture Pimpri Chinchwad as the protagonist in its own journey—a courageous figure embarking on a quest to create a better city for its people by persevering to transform the way people move, the way people experience their streets, and the way it sets the foundation for resilience. Pimpri Chinchwad’s quest remains a work in progress, with much more to be accomplished, but it has started its journey with a realisation—a realisation that change is necessary for the city’s future prosperity amid rapid urbanisation, which sparks hope. 

The plot: an ongoing challenge of traffic, poor air quality, and people’s safety

The plot of this storyline starts with the pressing issues of traffic congestion, declining air quality, and people’s safety, driving the necessity for change. The vehicle population of over 21 lakhs (2024) is racing to match that of humans, with projections suggesting that the city’s population has crossed 24 lakhs. Given the surge in vehicles, it comes as no surprise that in November 2023, the city’s PM 2.5 levels reached a staggering 103-121 µg/m³, well surpassing the prescribed daily average concentration limit of 60µg/m³. 

Safety in terms of public health and the risk to life from road accidents was also a significant factor in changing how people move. In 2022, Pimpri Chinchwad recorded 1051 road accidents, and over 370 lost their lives in road accidents—four times higher than in 2018. 

The silver lining: city leaders stepped up to initiate action

For more than a decade, these challenges have persisted, placing Pimpri Chinchwad at a perpetual crossroads where it must make a critical decision: either expand road infrastructure to accommodate the growing influx of vehicles or prioritise the safety and welfare of its residents.

In navigating this decision, a silver lining has emerged as Pimpri Chinchwad discovered a steadfast ally in its most important supporting characters—dedicated city Municipal Commissioners who have championed sustainable mobility since 2018. These city leaders embraced the pivotal role of crafting policies and implementing sustainable mobility interventions—the only way to reduce congestion, minimise emissions, and improve safety. They have done this by promoting public transport with 50 kilometres of the Rainbow Bus Rapid Transit System (BRTS), plying a fleet of over 450 electric buses, building over 100 kms of walking and cycling networks, and laying a robust foundation through policies—like a Non-motorised Transport Policy — and capacity building for the longevity of its efforts. 

The rising action: the city created better infrastructure to move people

One of the earliest and most significant actions in this saga was the city leaders’ initiative to take action on the ground. In 2018, the Pimpri Chinchwad Municipal Corporation (PCMC) successfully implemented the Rainbow BRTS connecting to its twin city, Pune. The BRTS changed public transport in the region, offering commuters a reliable, efficient, and sustainable mode of travel within and between the two cities. Operated by the Pune Mahanagar Parivahan Mahamandal Limited (PMPML), this system spans four corridors, covering a distance of 50.5 km and serving 2.88 lakh passengers daily within Pimpri Chinchwad’s city limits. The city, along with PMPML, is continuing to make improvements to the system by revamping corridor intersections, installing security cameras, and upgrading the Intelligent Transportation Management System (ITMS) to boost ridership. 

In addition to the BRTS, the electrification of buses serves as a pivotal turning point in the city’s storyline. It represented a moment of revelation, where the city realised the importance of embracing cleaner, more eco-friendly transport options. Between 2018 and 2019, 150 e-buses were introduced to serve the twin cities, and the fleet has since expanded to over 450, with an additional 200 in the pipeline. Over 70% of them are already operating on the BRT corridor. 

Around the same time, the city realised that relying solely on public transport wasn’t enough to create a captivating saga; it needed supplementary initiatives such as walking and cycling—after all, more than 30% of the city’s trips are by walk and cycle. The city’s Urban Streetscape Programme was launched in 2018, drawing inspiration from successful models of Chennai and Pune’s street programmes to improve walking and cycling infrastructure in the city. This impact of this programme, combined with the endeavours of Smart City Ltd, resulted in over 45 km of streets being revamped with wider footpaths, safer pedestrian crossings, and landscaping—Linear Garden, Patil Street, and Nigdi Road are great examples—with an additional 65 km in progress. 

Linear Garden Road designed by Prasanna Desai Architects

Additionally, Pimpri Chinchwad’s active participation in the national Streets4People and Cycles4Change Challenge, hosted by the Ministry of Housing and Urban Affairs (MOHUA), enabled them to develop innovative designs, employing a Test-Learn-Scale approach. This involved implementing tactical urbanism interventions on the ground to test out solutions and subsequently expanding successful initiatives.

Handle-bar surveys for Cycle4Change Challenge

However, as the city delved deeper into these initiatives, it became evident that these projects were not forming a connected network for pedestrian or cyclist movement which led to the inception of the ‘Harit Setu’ Masterplan, translating to ‘green connectivity.’ When implemented, it would transform the city into a 15-minute cycling-and-walking-friendly haven by enhancing existing connections and creating new green links. The pilot implementation in the Pradhikaran neighbourhood will serve as a learning experience to inform a scale-up strategy, enabling PCMC to expand walking and cycling infrastructure and transform one neighbourhood at a time.

The turning point: Pimpri Chinchwad implemented policies and strengthened the team’s capacity for resilience and expansion of its efforts

Pimpri Chinchwad recognised that while building infrastructure was vital, strategic planning for resilience and scalability was equally imperative. As the storyline progressed, Pimpri Chinchwad embedded policies to ensure stability and consistency in planning and decision-making to safeguard these initiatives against changes in leadership or priorities. 

As part of this effort, the city has begun addressing the significant challenge of managing on-street parking, which has been a major concern. The city remains dedicated to enhancing parking solutions through area-level plans and establishing a robust institutional framework. They collaborated with consultants to conduct comprehensive studies, serving as the foundation for the Parking Policy adopted in 2018. The city is looking to revise the policy in 2024 based on their learnings from parking management experience to date and make enforcement more stringent.

In 2022, they also adopted a Non-motorised Transport (NMT) Policy to achieve a target of 90% of trips made by public transport, walking, or cycling by 2036. The policy focuses on creating a safe, seamless, and pleasant network of top-notch infrastructure for walking and cycling in the city. It also goes beyond infrastructure development to integrate sustainable environmental planning and utility management to boost quality of life, spur economic growth, and preserve ecological well-being.

Adoption of Pimpri-Chinchwad’s Non-Motorised Transport Policy

The city needed internal capacity, skills, and expertise to implement policies and projects effectively, hence, investing in team development became crucial. In 2017, PCMC organised workshops and site visits to enhance skills and knowledge. Recently, city officials and engineers involved in mobility projects have pursued Masters programs in transport planning, completed national road safety audit courses, and participated in certified programs to build expertise further.

A twist in the plot: financing sustainable mobility projects

In Pimpri Chinchwad’s story, a pivotal plot twist arises, revealing a significant gap in financing for sustainable mobility projects. A staggering 58% of the total allocated transport budget of 1168 cr in 2024-25 was earmarked for vehicle-centric projects, such as grade separators and road development, which offer temporary remedies to congestion but exacerbate the problem in the long term. Consequently, just 5% (110 km) of PCMC’s streets have been transformed thus far. To meet the ambitious targets outlined in its NMT Policy, PCMC must strive to implement a minimum of 25 km of better streets every year until 2035, which requires an annual investment of 200-250 crore solely for street development.

Additionally, there is an urgent need to increase the number of buses, as the current ratio of 31 buses per lakh population falls short of the desired benchmark of 60 buses per lakh population set up by MoHUA. PMPML currently operates a fleet of 2,200 buses, while the benchmark suggests a fleet of 5,200 buses is necessary. Out of this, Pune requires 2,700 buses, PCMC requires 1,800 buses, and the Metropolitan Region outside both Municipal limits requires 700 buses. To address this demand, PCMC requires an investment of approximately 930 crore, solely for bus fleet augmentation. 

Shortfall of buses in Pimpri-Chinchwad

Presently, PCMC allocates 495 crore to street initiatives and public transport combined. While this falls short of the funds needed for street and public transport projects, it is a 100% increase in the funds allocated for such projects compared to the 2023-2024 budget. Amidst these challenges, PCMC is actively exploring diverse funding avenues, including the Smart Cities Mission, municipal bonds, and funding through development banks, in a concentrated effort to secure the necessary resources for its initiatives.

The climax

PCMC acknowledges the funding shortfall for sustainable projects but is working towards establishing a strong foundation to scale up efforts. It is initiating a Sustainability Cell to prioritise innovative and sustainable approaches in city planning, alongside the establishment of an Urban Mobility Department to consolidate mobility-related efforts. This initiative aims to enhance coordination within PCMC departments, and include various civil society organisations (CSOs) and experts to streamline collaboration.

The city has become a model of collaboration, working with CSOs and community groups to lead the shift towards sustainable mobility. It recognises that meaningful change requires involvement from all stakeholders sharing a common vision.

In conclusion, Pimpri Chinchwad’s tale is not just one of transformation—it embodies perseverance and resilience. With sustained efforts, the city is witnessing the results of its hard work. The city was recognised as one of the top 11 cities in the C4C and S4P challenge, as well as being selected as one of the 10 cities for the Bloomberg Initiative for Cycling Infrastructure (BICI). Instead of pausing, Pimpri Chinchwad is intensifying its commitment, evaluating the impact of initiatives like street assessments, and amplifying successful strategies. This forward-thinking approach reaffirms the city’s dedication to progress and prosperity, setting a promising course for its future.

Written by Kashmira Dubash

Technical inputs from Pranjal Kulkarni and Rutuja Nivate

From Benchwarmers to Game Changers: Accelerating Electrification of Private Buses

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As published in Economic Times.

In the last decade, India has channelled substantial investments to power the electrification of our go-to means of transport—the humble bus. The bus is a crucial player in our race against the climate crisis. We have 1.4 lakh publicly owned and operated buses in India. Even if just one-fifth of these buses go electric, it could reduce 6 lakh tonnes of CO2 per year. This sparks hope.

India’s response through its schemes such as FAME I and II, and the PM e-Bus Sewa Schemes targets incentivising the public bus sector. But this strategy inadvertently overlooks a critical stakeholder—private sector bus operators. Why are they critical? The bus ecosystem in India has about 20 lakh buses with two vital players: public buses often take centre stage, but another is the private sector, which owns and operates a whopping 93% of buses in India.

Leaving the private sector out of national schemes and incentives is like playing a sport with less than 10% of the team—how can we hope to win the match against climate change without their contribution? Let’s see how we can bring them in.  

The current ecosystem—starting the game at a disadvantage

At the national level, India has set a target of 40% of new buses being electric by 2030, and introduced schemes to incentivise the procurement of e-buses. Schemes such as FAME I and II sanctioned 5595 e-buses to date, just for the public sector. The 2023 announcement of the Rs 57,613 crore PM-eBus Sewa scheme, targeting the public sector to deploy 10,000 e-buses, focuses on improving urban connectivity, particularly in cities lacking organised bus services. Yet, it neglects the involvement of the private bus sector, who tend to be the primary service providers in these cities. 

Even with these Schemes, the uptake of e-buses has been gradual in the public sector. This limitation stems from the financial instability and hesitancy to fully embrace electric buses, primarily due to concerns about insufficient grid capacity. With just 7,000 e-buses on the ground, we have a long way to go to meet the national target and the bus demand.

By 2030, the projected demand for stage-carriage non-urban buses is 7 lakhs, while the demand for urban buses is anticipated to reach 3 lakhs. Private sector buses can help fill this gap to some extent, but we still need an overall increase in bus fleets—both public and private—to meet this demand. As we look to increase these fleets, we have an opportunity to accelerate a transition to cleaner electric buses. But without any strategies and mechanisms for the private sector, we’re on the field, but we may be starting the match at a disadvantage.


Rethinking strategy to level up the playing field

Just as a coach strategically positions players on the field to seize scoring opportunities, the government must orchestrate a winning game plan by creating favourable conditions and incentives for private sector buses to transition to electric. There are multiple ways of levelling the playing field, but let’s focus on two interventions at the national level: Financial mechanisms and regulatory support to reduce upfront costs of purchasing an e-bus; Zero Emission Vehicle (ZEV) mandates to achieve economies of scale and boost the supply of e-buses.

The primary factor contributing to the private sector’s hesitancy in transitioning is the substantial up-front cost of procuring an e-bus. An electric bus costs four times as much as a diesel bus. In conversation, private operators said they would need to be within 1.5 to 2 times the cost of diesel buses to be feasible to invest. For this to happen, it is important to loop in financing institutions—banks and non-banking finance corporations (NBFCs)—to offer loans to private bus operators based on their creditworthiness, with favourable terms such as low-interest rates (4-6%), extended repayment periods (from six-eight years), and no additional collateral against the loan except for the electric bus.

Another avenue worth exploring with financing institutions is a model of leasing buses. Under this arrangement, financers can lease them, providing coverage for insurance, maintenance, and battery replacement, for at least nine years to be financially viable. Private bus operators would then be responsible for covering staff, permits, and energy costs. Furthermore, state governments should consider legalising permits to facilitate lease models where ownership and operations can be separate.

While these incentives are designed to stimulate demand for e-buses by reducing the financial barriers with their procurement, it may not be enough unless regulatory goals and a ZEV mandate are part of the plan at the national level—this can guide a winning strategy. In 2023, e-buses accounted for only about 5% of the total sales of buses. The national target is to get to 40% by 2030. A ZEV mandate can help boost this by requiring original equipment manufacturers (OEMs) to produce and sell a minimum number of ZEVs as a percentage of their total sales each year. Such a mandate would not only encourage OEMs to prioritise and produce electric buses but also play a crucial role in reducing the cost of e-buses.

If OEMs begin to manufacture more, the production cost per e-bus reduces due to economies of scale. It also allows OEMs to negotiate better prices for components and batteries, ultimately benefiting the end user. As mentioned earlier, the private sector accounts for a larger portion of the market than public buses. Demonstrating a high demand can incentivise OEMs to increase their product more aggressively, aligning with the long-term goals of the ZEV mandate.

We can learn from an example like California, which has pioneered implementing ZEV mandates, setting ambitious targets for automakers to produce and sell electric vehicles, leading to a potential 100% ZEV mandate by 2035. Since 1990, California’s ZEV program has aimed to reduce local air pollution and transition from internal combustion engine (ICE) vehicles to electric, starting with a 2% ZEV sales mandate. Despite initial hurdles, technological advancements and policy revisions, including the 2012 alignment with national greenhouse gas standards, have paved the way for a substantial rise in new EV sales, reaching 12.4% in 2021. California now anticipates achieving 100% by 2035, reflecting its commitment to addressing climate concerns and meeting net-zero targets.

In it to win it – our match against climate change 

In our race against climate change, electrifying public buses is a critical game plan, but obstacles in the form of financial struggles for STUs have slowed our momentum even with the Centre’s support. It’s time to add another tactic for the private sector, an untapped powerhouse waiting to deliver. Extending financial incentives such as lower interest rates for loans, longer loan tenure, and a leasing model can address their biggest concern of costs related to e-buses. But to guide a winning strategy, regulations such as ZEV mandates are required at the national level to increase the supply of affordable electric buses.

As the final whistle blows, the message echoes loud and clear: the only championship-winning move towards faster electrification of buses is to put together a strong team that combines the public and the private sector. 

Written by Kashmira Dubash –  Sr Programme Manager, Communications and Development,  Sivasubramaniam Jayaraman – National Lead: Transport Systems and E-mobility

With technical inputs from Vaishali Singh – Programme Manager, E-mobility and Public Transport Systems
Edited by Keshav Suryanarayanan – Deputy Manager, Communications and Development 

Year in Review: 2023 predictions revisited

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2023 was a crucial milestone for us—ITDP completed 25 years of its journey in India! We started the last year by pausing to reflect and back at the previous year, but also going out on a limb to look ahead and envision five things we wanted to see in 2023. Here we are a year later, a year wiser. Maybe we were too ambitious, maybe we didn’t go far enough. But we hope to keep working towards these goals, and we’re in it for the long run. Let’s take stock of progress towards these goals last year: 

1 | A renewed and long-term focus on sustainable transport at the national level

In a heartening move, the national government launched the PM E-Bus Sewa Scheme in August to support the rollout of 10,000 electric buses, a huge step towards augmenting public transport systems, especially in Tier-II and Tier-III cities across the country.

As we enter 2024, we also hope to see continued progress from pioneering cities across the country which have been working on initiatives through national programmes like India Cycles4Change, Streets4People, and Transport4All Challenges. We look forward to supporting them in their efforts and hope to see renewed support at the national level for cities to scale up their initiatives. 

2 | Legislative support for safe, inclusive, and sustainable urban transport

While we’re yet to see a strong push towards this at the national level, we are heartened by some positive steps at the state level. In July, the Madras High Court ruled that all buses to be procured for the public transport fleet in Tamil Nadu should ensure accessibility for persons with disabilities. We are hopeful to see more work in this crucial area. 

We hope to work together with key stakeholders and partners this year to support the development of regulatory reforms required for various aspects of sustainable mobility, by conducting research on existing gaps in regulatory frameworks and developing recommendations.

3 | Cities embracing low emission zones for cleaner air

Many Indian cities are exploring ways to address increasing air pollution, including through restrictions on certain categories of particularly polluting vehicles. Delhi’s Graded Action Response Plan (GRAP) to address pollution includes a ban on BS-III and BS-IV vehicles. Pimpri-Chinchwad became the first city in Maharashtra to implement a GRAP, which included LEZ as a strategy to address severe pollution, in addition to improving public transport and promoting non-motorised transport and EV zones. 

ITDP India is working with Pimpri Chinchwad, as well as Pune and Aurangabad to explore strategies for implementing LEZ. We hope to see more cities embrace solutions for cleaner air in cities. 

4 | Incentives for a private sector transition to electric buses

We’re yet to see significant improvements in this area, but there have been some steps in the right direction. At the national level, the Bus and Car Operators Confederation of India (BOCI) is in discussions with NITI Aayog on the support they need for the sector to shift to e-buses. At the state level, Tamil Nadu launched a revised EV Policy in February, which included an opportunity to explore the provision of charging infrastructure as a service for private operators and avenues to encourage a faster transition to EVs for staff buses. 

Launch of the Tamil Nadu Electric Vehicle Policy 2023 by the Chief Minister of the state

Along with CEEW and SGArchitects, ITDP India organised a consultation along with Guidance, Industries Department to bring together various private sector stakeholders—bus operators, OEMs, charging infrastructure providers, and financial institutions—to provide inputs for the policy revision. ITDP India also developed a roadmap for private sector bus electrification in Tamil Nadu, identifying key barriers to electrification, with recommendations for key supply and demand-side measures required. 

In 2024, we look forward to working with BOCI at the national level. Apart from our work for private sector electrification, ITDP India will also support Tamil Nadu in implementing the state EV Policy to accelerate electrification including through regulatory reforms. To ensure a comprehensive approach to electrification in the state, we are also developing guidance for integrating charging infrastructure with parking facilities.

5 | Geospatial data leveraged for urban transformation

We have seen a growing interest in this area. The National Institute of Urban Affairs hosted the National Urban Conclave in October, with multiple sessions focused on initiatives, dashboards, and platforms to leverage data. While geospatial data is one part of the puzzle, we also identified opportunities to leverage other quantitative and qualitative data to improve decision-making. We analysed state and city-level budgets to assess the budget allocation for sustainable transport initiatives and also assessed the impact of street design projects.

We’re seeing increasing support for data-based decision-making, and we look forward to working with various stakeholders at the city and state level to strengthen these processes.

While these are some signs of progress in the right direction in these five important areas, this is not all that happened last year. With multiple city-level wins, publications, events, training workshops, and partnerships, 2023 has been a fulfilling year! Check out this photo-story of five highlights from 2023. We look forward to seeing where 2024 takes us!

Written by Keshav Suryanarayanan

Photo-story: 2023 Highlights

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With multiple city-level wins, publications, events, training workshops, and partnerships, 2023 has been a fulfilling year! 

Here’s a photo-story of five highlights from 2023: 

We look forward to seeing where 2024 takes us!

Written by Keshav Suryanarayanan
Designed by Varsha Jeyapandi

2023 Publications Wrap-up

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With a strong focus on improving public transport systems across India, we launched six new publications last year.

Of these, we launched four publications in collaboration with the Association of State Road Transport Undertakings (ASRTU)—the apex body for public bus operators across the country. This included two ambitious and comprehensive guidebooks—Reaching Your Riders and E-Bus Basics—and two reports on public-private partnerships and e-bus procurement in Maharashtra.

We also collaborated with the University of California, Davis on a report—Compact Cities Electrified: India—that showed that meeting India’s climate commitments will require a combination of two strategies—rapid vehicle electrification and compact cities that can accelerate a shift to less polluting modes. 

To share the insights from the report and kickstart a nationwide conversation on compact electrified cities, ITDP India presented the report at a round table on ‘Compact Cities: Pathways toward India’s Sustainable Future’ at the Urban Mobility India Conference 2023 in October. This session, anchored by the Ministry for Housing and Urban Affairs, included various key stakeholders—including national, state, and city-level officials, development banks, and technical experts.

With the National Payments Council of India and the Institute of Urban Transport, we launched a report on the National Common Mobility Card at the Global Fintech Fest in Mumbai in September 2023.

We end the year with a lot of gratitude to all our partners and collaborators and big plans for the coming year, with some important and exciting publications on the way. In addition to the publications, we saw a lot of progress towards our goals in 2023, check out this photo-story for our highlights of the year. We look forward to expanding our research, partnerships, and impact in 2024 towards our vision of creating an inclusive and sustainable future for all Indian cities.

Written by Keshav Suryanarayanan

Designed by Varsha Jeyapandi