






Conceptualised by Smritika Srinivasan (Ex ITDP India) and Varsha Jeyapandi
Designed and Illustrated by Varsha Jeyapandi
With inputs from Kashmira Dubash and Venugopal AV

by admin







Conceptualised by Smritika Srinivasan (Ex ITDP India) and Varsha Jeyapandi
Designed and Illustrated by Varsha Jeyapandi
With inputs from Kashmira Dubash and Venugopal AV

by admin


Read time ~7 minutes
Tamil Nadu is one of the few states in India where both public and private bus services have long coexisted as a system that once struck the perfect balance between coverage, affordability, and reliability. This partnership ensured that buses reached deep into neighbourhoods and mofussil routes while keeping fares affordable and services reliable.
But today, the system finds itself in a catch-22 situation leading to long waits for passengers. Government-run bus services are struggling to keep pace with growing demand and limited fleets, while private operators, are constrained by limited permits and soaring diesel costs, leading to challenges in operations and expansion. The result — commuters have fewer buses to rely on, forcing them to be dependent on personal vehicles leading to worsening air quality and congestion.
But there is a silver bullet, which can help salvage the situation.
A new study by ITDP India, Accelerating Sustainability: Electrifying Tamil Nadu’s Private Bus Sector, offers a way out of this deadlock. By electrifying private stage carriage buses through a leasing model, the state could bridge its bus deficit and curb emissions but also help private operators expand profitably, all at once — turning this catch-22 into an opportunity for cleaner, more reliable public transport.
But how bad is the bus problem in Tamil Nadu to begin with?



Buses are the backbone of Tamil Nadu’s urban mobility. There is a total of 28,500 stage carriage buses (private and government operated). These are the buses which run on fixed routes, stop to pick up and drop off passengers, and charge per head. Of these 28,500 stage carriage buses, 30%, i.e 8,600 odd are privately owned. Of these, only 7,500 buses are currently operational on the road every day.

Relying on these 7,500 odd private buses every single day, are a whopping, 48 lakh passengers!
What’s worse? There are 63 urban cities in TN with populations over one lakh, but of the 63, only 12 cities operate city-bus services, using a combined fleet of 7,909 buses (public and private).

To meet current demand of 48 lakh passengers, Tamil Nadu would need at least 15,000 buses—roughly double what’s available (8000 odd).
Projections for 2030 and 2040 show the gap widening further, making urgent action essential.
These numbers show that we need more buses – not necessarily private. That said, private operators are better positioned to step in and bridge this gap, given their already vast fleets provided the right incentives are in place. The latest ITDP India study proposes that this can be taken up in most sustainable way by issuing fresh permits for private buses, with a clause of using just e-buses.
So, it is clear, urban areas in Tamil Nadu need at least 15,000 additional buses. Expanding the government fleet alone would be slow and costly. By issuing 7,000 new permits, all exclusively for electric buses, Tamil Nadu could see substantial improvements within the next 5 years. Further more, e-buses are not just good for urban air quality but also for exploring innovative financing options.
It is crucial to note that a major roadblock to this expansion is that no new permits for private stage contract buses have been issued since 1972.
One of the biggest barriers to electrification is the high upfront cost of e-buses. A leasing model can be allowed in Tamil Nadu to eliminate this challenge, making it easier for private operators to switch to electric buses.
Leasing will enable operators to access e-buses at lower costs, allowing for faster electrification. The government could also include leasing provisions in new permits, along with financial incentives.
How this works is that, typically, instead of spending crores to buy an e-bus for upward of ₹ 1 crore, leasing allows the operator to run buses in just ₹ 3-3.5 lakhs every month. In this, only ₹ 1.8-2 lakh will be given to “Fleet Aggregators” or “Rolling Stock Supply Company (ROSCO),” as fixed lease charge. There will be no other additional cost, interest, or EMIs only security deposit which is equivalent of down payment around ₹ 10–12 lakh which is refundable at the end of the lease period. This will make electric buses more lucrative for markets and increase electrification. By transitioning to e-buses, an operator can save at least ₹ 13 lakh per bus annually on rising diesel costs.
Leasing also ensures higher service quality, as the government can set clear benchmarks for leasers—such as: air-conditioned buses, wheelchair accessibility, National Common Mobility Card (NCMC) compatibility etc.

To gauge industry response, ITDP India conducted a survey with 250+ private bus operators in Tiruchirappalli, Erode, Cuddalore, Tiruvannamalai, and Dindigul. The findings revealed that 60% of operators are willing to adopt e-buses, provided the government supports them with necessary support like: dry leasing options, lower interest rates, financial aid for electrification, charging infrastructure etc. They stated that they can transition around 1500 old diesel buses to electric in next 3 years.
A key driver behind this interest is the soaring cost of diesel, which accounts for 60% of total operating expenses for private buses.





Beyond transport benefits, electrifying 8,500 private buses could drastically cut Tamil Nadu’s carbon footprint. ITDP India’s analysis estimates that full electrification would:
This transition also aligns with India’s Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable Clean Energy) and SDG 13 (Climate Action).
ITDP India has prepared a detailed report with technical analysis on how to bring in this shift. The report recommends several key steps like-
1. Regulatory reforms such as recognising the lease model in the stage carriage permit condition,
2. Establishing leasing framework for e-buses
3. Establishment of e-bus leasing company
4. Piloting e-buses across various cities to evaluate energy and operational efficiency.
5. Expanding charging infrastructure, with special tariff for e-buses.
6. Policy for new permits exclusively for e-Buses
7.Provide scrappage incentives to operates to scrap old diesel vehicle
By following such recommendations, Tamil Nadu can ensure that its public transport system which has long thrived on the partnership between state-run and private buses can prosper in years to come, sustainably. Going forward, electrifying private stage carriage buses through innovative leasing models can allow the state, to not only expand bus availability rapidly, but cut emissions, and make services more sustainable and reliable. Supporting private operators to modernise their fleets isn’t just a policy option, it’s a necessary step to future-proof Tamil Nadu’s mobility and air quality.
If acted upon, this approach could once again position Tamil Nadu as a leader in public transport, where government and private players work hand-in-hand, commuters move without compromise, and the state streets hum with cleaner, quieter, and more efficient e-buses.
Written by Aditya Rane, Senior Associate, Transport Systems and Electric Mobility and Donita Jose, Senior Associate, Communications.

by admin
~ 6 minutes read time
Here’s a number we cannot ignore – heavy vehicles make up just 4% of all vehicles on Indian roads, yet they are responsible for nearly 60% of transport-related emissions. That one number alone shows why the newly announced Fuel Efficiency norms – Corporate Average Fuel Efficiency (CAFE) norms, by Bureau of Energy Efficiency (BEE) are so critical.
First introduced in 2017, these were originally just fuel efficiency norms requiring all BS-VI heavy-duty vehicles (HDVs) (HDVs are vehicles above 12 tonnes) to meet minimum fuel efficiency levels based on their model’s requirement when tested at 40 km/h and 60 km/h. These were known as Minimum Energy Performance Standards (MEPS).
Building on this, BEE is now planning to tighten the regime further and is moving into the second stage. A new draft released on 28 July 2025 proposes taking fuel efficiency norms into Phase 2, where in model specific fuel efficiency norms will be replaced by CAFE norms. The proposed implementation window is from 2027 to 2032.
What really makes Phase 2 stand out is also the introduction of Super Credits—a mechanism designed to reward cleaner zero-emission vehicles.
Before diving into these details of proposed Phase 2, let’s step back and understand the basics: what exactly are CAFE norms?
CAFE norms is a type of fuel-efficiency norm levied on manufacturers of all vehicles like cars, buses, and trucks. Under this, they have to improve the efficiency of the entire fleet they manufacture by a certain percentage by improving the engines of the vehicles. Instead of judging each model separately for fuel efficiency, regulators look at the average efficiency of an entire fleet produced by a manufacturer. This means that instead of judging each model separately, regulators look at the average efficiency of an entire fleet produced by a manufacturer.
This gives bonus credit for each clean bus (EV or hydrogen) sold, making it easier for OEMs to meet compliance targets. For operators like the various state transport undertakings, this will eventually translate into more availability and choice of zero-emission buses in the market. For BEE, it ensures that fuel efficiency norms also linked to electrification.
ITDP India based on available data, calculated what the 30% better fuel efficiency will mean for buses. Following are the findings:
Efficiency improvement: A fuel-efficient bus can cover 4.55km in one litre fuel as compared to 3.5km on a normal bus.
Fuel saved: ~6,000 litres/year/bus
Cost saved on fuel: ~₹5.7 lakh/year/bus (based on fuel rates in September 2025)
Emission reduction: ~16 tonnes CO₂/year/bus
Efficiency improvement: A fuel-efficient bus can cover 5.85km in 1 litre fuel as compared to 4km/litre on normal bus
Fuel saved: ~7,500 litres/year/bus
Cost saved on fuel: ~₹7.1 lakh/year/bus (based on fuel rates in September 2025)
Emission reduction: ~20 tonnes CO₂/year/bus
Efficiency improvement: A fuel efficient bus can cover 3.9km on one kg of CNG as compared to 3 km/kg on a normal bus.
Fuel saved: ~7,000 kg/year
Cost saved on fuel: ~₹6.5 lakh/year (based on CNG rates in September 2025)
Emission reduction: ~13 tonnes CO₂/year
On an avg. 80,000 new ICE buses registered every year. If these norms apply on all 80,000 of them, the benefits are massive:
Written and researched by Aditya Rane S- Senior Associate, Transport Systems and Electric Mobility
Edited by Donita Jose, Senior Associate, Communications

by admin
Read time- 6 minutes
Chennai is on the brink of a clean mobility revolution. The Tamil Nadu Chief Minister, MK Stalin inaugurated over 120 electric buses on June 30—marking the city’s first major deployment of zero-emission buses. This will be the first time that the city bus operator- Metropolitan Transport Corporation (MTC) will operate e-buses! These 120 e-buses, all being non-AC, have been rolled out as part of a larger plan to electrify the fleet, with total of 625 buses expected to be introduced later this year in Phase 1. In Phase 2, which is slated for next year, another 600 are expected, taking the total to 1250 e-buses.
For a metropolis that moves lakhs of people daily, this is not just a fleet upgrade, it is a powerful signal that Tamil Nadu is serious about decarbonising transport and building climate-resilient cities.
One of the key reasons why this move to go electric is a milestone for the state, is that transport is one of the growing contributors to greenhouse gases in rapidly urbanising state of Tamil Nadu. As per data from the recent report Tamil Nadu’s Greenhouse Gas Inventory and Pathways for Net-Zero Transition, GHG emissions from the transport sector in Tamil Nadu almost tripled between 2005 and 2019, from 10 million tonnes of carbon dioxide equivalent (MtCO2Eq) to 27 MtCO2Eq. The report also found that the share of transport sector emissions in the overall emissions has grown from 12% to 19% in the same period.
The situation is likely to have not improved post 2019 as well, as data from the official Vahan dashboard shows that EV adoption is still in the nascent stages in Tamil Nadu.
This slow uptake makes electrifying state-operated public transport fleets an important and high-leverage opportunity. With direct control over these fleets, the government has led by example. This one move has also enabled the broader EV ecosystem, including charging infrastructure, maintenance networks, and local manufacturing, to scale up!
MTC currently operates 3420 buses in the Chennai Metropolitan Region. As per estimates from other Indian cities, each bus running on diesel, emits tail pipe carbon emissions to the tune of 755 gm CO2 per kilometre. While public buses still generate lower emissions per passenger-kilometre compared to private vehicles like cars and two-wheelers, the absolute emissions from diesel buses remain detrimental to the environment, especially considering the daily operations of thousands of kilometres.
As per MTC’s current plans, the incoming e-buses will be introduced in phases. Initially these e-buses will be new additions to the fleet and will not be replacing the diesel buses. This will help in expanding the service of MTC to more parts of the city.
By doing so, MTC will nudge more people to choose public transport over personnel vehicles. This shift will help bring down not just tail-pipe emissions from private vehicles but also ease the everyday issue of traffic congestion. After all, a single bus that carries about 50 passengers can replace nearly 30 cars on the road. What’s more, buses take up less than 2% of the total road length, but serve over 30–40% of all urban commuters. So, every new bus added to the fleet doesn’t just clean up the air—it also frees up road space, making the city move better and breathe easier.
Additionally, MTC is exploring retrofitting older diesel buses with Compressed Natural Gas (CNG) technology. This parallel move will further lower tailpipe emissions from the remaining conventional fleet, ensuring that even non-electric buses contribute to a cleaner urban environment.
In subsequent phases, these electric buses will begin replacing ageing diesel buses, leading to a gradual but sustained reduction in the carbon emission intensity of Chennai’s public transport system. This strategy balances both immediate service expansion and long-term decarbonisation.
| Funding Support | Electric Buses |
| KfW | 500 |
| World Bank- GCC based buses for MTC | 625 |
| World Bank- GCC based buses for MTC | 600 |
| KfW Phase 3 | 750 |
| KfW Phase 4 | 650 |
| KfW Phase 5 | 100 |
In 2023, Tamil Nadu launched its updated EV policy, setting a clear goal, to make at least 30% of all buses run by State Transport Undertakings (STUs) electric by 2030.
The policy has stated that ‘The STUs run a large share of public buses in Tamil Nadu. The government will switch to electric buses in a phased manner and aim to make 30% of the fleet electric by 2030’
The current rollout of e-buses is a direct reflection of this commitment. With a total fleet of 20,508 buses across eight STUs, including MTC, the State Express Transport Corporation (SETC), and Tamil Nadu State Transport Corporation (TNSTC) divisions in Coimbatore, Madurai, Tirunelveli and others, the state would need to procure over 6,100 electric buses in the next five years to meet this goal.
While this target is ambitious, the state is already making decisive moves. Tamil Nadu has begun procurement of total of 2500+ e-buses through World Bank-supported Gross Cost Contract (GCC) models and KfW funding. Officials have also indicated that based on lessons from this initial tranche, the state will continue expanding the fleet by 500 to 750 buses annually. This steady, phased approach allows the state to scale up capacity on e-bus operations, while building on operational experience.
Beyond its state goals, this effort also contributes meaningfully to India’s national EV30@30 ambition, which aims to electrify 40% of all buses by 2030.
But in 2024–25, only 3% of all new buses sold in the country were electric. That’s just 3,400 e-buses, compared to more than one lakh diesel buses. In this situation, every effort, including that of Tamil Nadu is a step in the right direction.
Along with buying new buses, the state is also investing in depots and charging stations. This ensures the system is ready to support the growing e-bus fleet.
Through it all, ITDP India has been providing technical support to the state, helping shape procurement plans and training programmes. With the right support and strong leadership, Tamil Nadu is building a path that other states can follow to make public transport clean, efficient, and future-ready.



Written by Donita Jose, Senior Associate, Communications, with inputs from Sooraj EM, Deputy Manager, Transport Systems and Electric Mobility
Edited by Aangi Shah, Senior Associate, Communications

by admin
Every single day, nearly 11 lakh citizens rely on Pune Mahanagar Parivahan Mahamandal Limited (PMPML) buses to move across Pune and Pimpri Chinchwad. For a service that’s just under 20 years old, this is no small feat. Despite fierce competition from private vehicles, the occasional pushback against dedicated bus lanes, PMPML has managed to carve out its space as a reliable, sustainable transport option.
Picture this: today, a Pune resident can board a PMPML bus, ride an electric bus on a dedicated BRTS lane, and pay a fraction of what other modes would cost. Few Indian cities can claim such progress. But this hasn’t happened overnight—over the last two decades, a series of strategic moves have strengthened PMPML’s presence, shaping Pune’s public transport network into what it is today.
However, the very gains that took years to build now face the risk of being undone. The city’s rapid growth demands more buses, better services, and continued investment—without which, PMPML’s ability to serve Pune’s people will weaken.
So, what were the key milestones in PMPML’s journey? Let’s dive in.
Here’s a look at this journey:
PMPML was formed in 2007 through the amalgamation of Pune Municipal Transport (PMT) and Pimpri Chinchwad Municipal Transport (PCMT), which previously operated as separate public transportation entities for Pune and Pimpri-Chinchwad, respectively. Pune and Pimpri-Chinchwad are sister cities with growing urban populations and expanding boundaries. This geographical proximity led to a significant overlap in bus routes and services offered by PMT and PCMT, often causing operational inefficiencies and commuter inconvenience. To address these challenges, PMPML was established as a unified public transport body to serve both cities as well as nearby towns and villages.
The formation of PMPML was further strengthened with streamlining the BRTS operations. Implementation of the Pune BRTS began in 2006, with Pune being the first city in the nation to adopt BRTS. The project was implemented on pilot stretches from Katraj to Swargate and Swargate to Hadapsar. The project was partially funded under JnNURM, which also led to development of footpaths and cycle tracks as part of the mandates for the funding. ITDP supported Pune Municipal Corporation (PMC) and Pimpri Chinchwad Municipal Corporation (PCMC) with the design of the BRTS corridors, as well as by creating awareness about the advantages of BRTS.
After the success of BRTS in initial pilot routes, additional corridors were inaugurated in 2015. These were the Yerwada-Wagholi and Sangamwadi-Vishrantwadi in Pune, and Sanvi Phata-Kiwale and Nashik Phata-Wakad for Pimpri Chinchwad inaugurated in 2015.
ITDP was involved as a technical partner, guiding PMC and PCMC with refinements in the overall system, leading to consolidation of these corridors under the ‘Rainbow BRTS’ brand. This strategic branding created a unified identity for BRT services across the metropolitan region.
Rainbow BRTS since has been ahead of the curve as it introduced advanced features, including dedicated BRTS stations with automatic gates, GPS-enabled bus tracking (AVLS), level boarding, passenger information systems, off-board ticketing, and speed tables for pedestrian crossings. PMPML also established a state-of-the-art Transport Command and Control Centre to monitor performance and service levels. Today, the Rainbow BRTS network spans slightly over 60 kms. Its hybrid operational model enabled buses to bypass traffic congestion along dedicated trunk routes while maintaining route flexibility across non-BRTS corridors.

Pioneer in Electric Buses
The next big milestone for PMPML was scripted in the year 2018 when PMPML further enhanced its service with the introduction of electric buses, setting a benchmark for sustainable urban mobility in India.
They were able to do this with financial support from the Pune Smart City Development Corporation who enabled the procurement of 150 e-buses, making Pune the city with one of highest number of e-buses in India back in 2018. This achievement was particularly noteworthy, as PMPML was not among the various transport undertakings selected under the FAME-I scheme. However, the experience gained paved the way for PMPML to secure financial support for 450 additional electric buses under the FAME-II scheme in 2019. ITDP has been actively assisting PMPML by providing technical support as required for the procurement of electric buses.
As it is well established now, e-buses are significantly more energy-efficient than Internal Combustion Engine (ICE) buses, with a 12-meter e-bus consuming just 1.3 kWh per km, compared to 2.82 kWh/km for diesel buses and 2.89 kWh/km for CNG buses. This makes electric buses nearly twice as fuel-efficient as their diesel and CNG counterparts.
In addition to efficiency, e-buses have matched the performance of CNG buses while recording fewer canceled kilometers. A passenger survey revealed that 75% preferred commuting on e-buses due to their superior ride quality, air conditioning, and reduced noise levels. Owing to these factors, PMPML is the only State Transport Undertaking (STU) offering air-conditioned services at standard fares. Since the operating cost of AC e-buses is lower than that of AC CNG buses, PMPML has been able to pass these cost savings on to its passengers. PMPML charges a fare of Rs 5 per km for both non-AC and AC buses. In comparison BEST which provides city buses services in Mumbai has a 20% higher fare for AC buses. (Rs 5 per km for non-AC Buses and Rs 6 per km for AC Buses. The daily passes also vary in fares, with Rs 50 and Rs 60 for non-AC and AC Buses, respectively.

One of the First STU to embrace Gross Cost Contract as way forward
Speeding up the electrification of fleet was adoption of Gross Cost Contract model by PMPML. The STU did so as a key component of its electric bus procurement strategy. Under this model, PMPML pays operators on a per-kilometer basis, while the operators provide buses, drivers, charging infrastructure, and maintenance. This arrangement shifts financial and operational risks away from PMPML, facilitating the rapid adoption of electric buses without significant capital expenditure. Pune’s pioneering implementation of the GCC model accelerated its transition to electric mobility and served as a reference for other Indian cities. Furthermore, PMPML continues refining its GCC framework, integrating lessons from past experiences.

PMPML hosted a Foundation Week from 18th to 23rd April 2022, celebrating 15 years of its service. In the months following the Foundation Week, both Pune and Pimpri Chinchwad saw the introduction of Metro services. PMPML has since been actively collaborating with Maha Metro to integrate their services and enhance accessibility for citizens. BRTS stops along the Metro corridor were relocated near Metro stations, aligning with the exit points to facilitate seamless transfers for passengers between the two services. Additionally, PMPML introduced feeder routes to Metro stations to expand the Metro catchment area, further improving access. Information panels were installed at Metro stations to help passengers easily identify and use the feeder services. In fact it continues to support the citizens of Pune region as an analysis by ITDP India on how the Nigdi-Dapodi BRTS corridor and Pune Metro services, compliment each other’s service found that, despite presence of Metro, the Nigdi-Dapodi BRTS corridor serves 1.5 lakh passengers daily, with 37 buses per hour during peak times, one bus every 1.6 minutes. About 47% of users were students (18-25 years).

PMPML has consistently demonstrated a proactive approach to improving its services by collaborating with various agencies and stakeholders. One such collaboration which reaped productive results was through the Transport4All (T4A) challenge. As part of this, PMPML supported startups in developing innovative solutions for modern day challenges which state transport undertakings face. Pune nurtured and piloted three successful solutions, one of which led to the creation of the Apli PMPML app. Building on the multi-modal integration, this app offers digital services to PMPML users, including live tracking, ticket booking, route planning, and more. It also integrates with Maha Metro’s online booking portal, advancing the digital integration of Pune’s public transport system. The Apli PMPML App marks a significant achievement for PMPML considering the popularity and positive reviews of the app, hinting its successful implementation. The same is backed by the staggering 10 Lakh+ downloads of the app in a span of only 6-7 months.

Pune and Pimpri Chinchwad have consistently proven themselves as leaders in public and sustainable transportation, setting a benchmark for cities across India. But as these cities grow, so too must their public transport systems. Maintaining ridership alone is no longer sufficient—the goal must be to significantly grow ridership. This calls for scaling up the fleet, upgrading service quality, and ensuring that capacity matches the region’s growing demand.
To truly meet the mobility needs of the future, operational efficiency must improve, and the passenger experience must be reimagined—with greater comfort, convenience, and safety at its core. Public transport must evolve from being merely a mode of mobility to becoming a seamless, enjoyable part of daily life for all residents.
As of 2025, in an industry-first, PMPML is set to incorporate qualitative benchmarks into its tendering process—prioritising service quality, operational efficiency, and commuter satisfaction. This strategic shift aims to elevate the passenger experience and reflects PMPML’s growing commitment to excellence. ITDP’s collaborative support has contributed to this evolution, providing technical insights and guidance throughout the journey.
Having supported PMPML since its early stages, ITDP remains a committed partner in this transformation—working together to deliver innovations and strategies that will help Pune Metropolitan Region emerge as one of the world’s most efficient, accessible, and environmentally responsible public transport systems.
As PMPML enters its third decade, can it keep up with Pune’s and Pimpri Chinchwad’s growing demands—and bring more people back to public transport? Stay tuned for the next part.
Written by Jagdish Temkar, Associate, Transport Systems, ITDP India
With Technical Inputs from Aditya Rane, Senior Associate – Transport Systems and Electric Mobility, ITDP India
Edited by Donita Jose, Senior Associate, Communication and Development, ITDP India

by admin
Read time- 10 minutes
As cleaning up India’s air becomes more crucial than ever, is the lack of strong policies to electrify buses a critical piece missing in the puzzle? Being the world’s second-largest automotive market in both vehicle production and consumption (OICA, 2024), India’s transition to electric mobility is pivotal for achieving its climate targets. Most critically, buses will play a crucial role in reducing carbon emissions by 1 billion tonnes by 2030 and reaching net zero by 2070.
But why are buses so critical to India’s story of reducing footprint? Road transport contributes over 10% of India’s total CO₂ emissions, with heavy-duty vehicles (HDVs) like buses and trucks accounting for nearly 40% of transport emissions despite representing only 2% of the vehicle fleet (ICCT, 2021). This disproportionate footprint highlights the urgent need to prioritise the decarbonisation of buses and trucks. Despite this, the current pace of electrification remains slow.
In FY2024-25, only 3% of total bus sales in India were electric, with just 3,400 e-buses sold compared to over 1 lakh Internal Combustion Engine (ICE) buses. This is starkly insufficient against India’s commitment under the EV30@30 campaign, which targets 40% of all new bus sales to be electric by 2030. This is barely five years from now.
Projections by ITDP India under the business-as-usual scenario estimated that India will only achieve 11% e-bus sales by 2030, far below the target of 40% under the EV30@30 initiative for buses. At this rate, only around 10,000 e-buses would be produced annually by 2030, whereas achieving the 40% target necessitates scaling production to 40,000 units per year—a four fold increase. Compounding this challenge is the limited manufacturing capacity of Indian e-Bus Original Equipment Manufacturers (OEMs), which collectively produce just 3,000 units per year as of 2025. Bridging this gap requires a paradigm shift—one that moves beyond demand-side incentives to a comprehensive policy framework anchored in Zero Emission Vehicle (ZEV) mandates.


A Zero Emission Vehicle (ZEV) mandate is a regulatory policy that requires automakers to sell a certain percentage of zero-emission vehicles — such as battery electric vehicles (BEVs), hydrogen fuel cell vehicles (FCEVs), or plug-in hybrid electric vehicles (PHEVs) — each year relative to their total sales.
In many regions, ZEV mandates are also extended to fleet operators, requiring them to procure a defined percentage of zero-emission vehicles within their fleet procurement cycles.
Manufacturers that fail to meet these quotas must purchase credits from compliant companies or face penalties. ZEV mandates are designed to accelerate the transition away from internal combustion engine (ICE) vehicles and help countries meet their climate and clean air goals.
How ZEV Mandates Helped EU and China
India’s EV penetration rate currently stands at 12.9%, driven largely by three-wheelers leading at 53.3% of sales, the adoption of larger vehicles such as buses and heavy-duty trucks has been considerably slower.
Currently, electric buses account for only 3% of total new bus sales in India, despite the country being the world’s second-largest bus market with annual sales averaging over 1 lakh units. In comparison, China introduced its New Energy Vehicle (NEV) mandate in 2017. Within just six years of cumulative efforts, the mandate has led China to achieve a stock of over 6,70,000 e-buses on its roads as of 2024. The share of electric buses in new sales in China became over 20% by 2023 (Source: IEA Global EV Outlook 2023). Meanwhile, the European Union (EU) has also progressed steadily, with 8% of electric buses in new sales in 2023, amounting to around 12,000 e-buses. In contrast, India lags significantly behind these global leaders, with only 10,500 e-buses on the road as of 2025, despite ambitious national targets. This highlights the urgent need for India to shift from a demand-side incentive approach to a supply-side mandate framework like the ZEV and Zero-Emission Buses (ZEB) mandates adopted internationally.
Globally, ZEV mandates have proven effective in accelerating EV adoption in:
Why E-Bus Adoption is Slow in India Despite Several Incentives
Despite numerous government incentives and policies, several structural and operational challenges impede the widespread deployment of e-buses in the country.
Over the past eight years, India’s push toward electric mobility has relied heavily on demand-side incentives through schemes like FAME I, FAME II, the PM E-Bus Sewa, and the proposed PM E-Drive scheme. These initiatives have successfully spurred EV adoption in two- and three-wheelers. However, in the critical heavy-duty segment — specifically buses — the progress is fragmented, tender-driven, and lacks long-term certainty.
Below are the key factors hindering the growth of the e-bus sector:
Need for Supply-Side Mandates in India
To meet its EV30@30 and net-zero targets, India must explore alternative measures beyond demand-side incentives to boost manufacturing. While initiatives like FAME-I, FAME-II, State schemes, and PM E-Bus Sewa have spurred initial growth, they are insufficient alone. Without a shift toward supply-side mandates, such as Zero Emission Vehicle (ZEV) mandates, the country risks falling short of its goals. These mandates would compel manufacturers to scale up production significantly, addressing the current gap in manufacturing capacity and ensuring a steady supply of electric buses to meet the ambitious targets. They can ensure that clean mobility is no longer voluntary or incentive-dependent, but a legal and scalable requirement.
According to the Economics of Energy Innovation and System Transition (EEIST) assessment, which evaluated the effectiveness of various policy instruments across four regions worldwide, mandates consistently emerged as the most effective tool for driving the transition to electric vehicles (EVs). According to the report:
Supply-side mandates, such as Zero Emission Vehicle (ZEV) mandates, will be crucial in bridging the gap in manufacturing capacity and ensuring a steady supply of electric buses. These mandates will compel manufacturers to significantly scale up production, addressing the current shortfall and ensuring that India remains on track to meet its electrification goals.

Key Takeaways:
Driving Toward a Sustainable Future
India’s journey toward zero-emission transportation represents not just an environmental imperative but a transformative opportunity for the nation’s mobility sector. By adopting comprehensive Zero Emission Vehicle (ZEV) mandates, the country can overcome long-standing challenges such as limited private sector participation, insufficient manufacturing capacity, and fragmented policy frameworks. Learning from global leaders like China, the EU, and California, India has the potential to scale up electric vehicle adoption across high-impact segments like buses and trucks.
Supply-side ZEV mandates, combined with prioritising local manufacturing, targeting commercial fleets, and fostering market-driven compliance, will enable India to achieve its ambitious EV30@30 and net-zero targets. With the right policies and collaborative efforts, India can lead the way in creating a cleaner, greener, and more equitable future for mobility.
Written by Aditya Rane S- Senior Associate, Transport Systems and Electric Mobility
With inputs from Vaishali Singh, Programme Manager, Transport Systems and Electric Mobility
Edited by Donita Jose, Senior Associate, Communications

by admin
Exploring Maharashtra’s ambitious E-bus rollout plans
With the Maharashtra State Road Transport Corporation (MSRTC) observing its 75th anniversary in June 2023, its motto— ‘Gaav tithe rasta, rasta, tithe ST’, meaning ‘Where there is a road, there is state transport’—has truly stood the test of time.
In 75 years of operations, its ever-growing fleet of over 15,000 buses has relentlessly served every nook and corner of the state, operating nearly 60 lakh kilometres per day. And as it heads into its centenary years, the Corporation has decided to make another ambitious leap – to electrify its fleet. It is in this light, that we look at the Corporation’s plan to electrify 25% of its rural bus fleet, with the addition of 5,150 new electric buses (e-buses) —unheard of in India’s state road transport landscape.
To put this achievement in perspective, traditionally, Indian State Transport Undertakings (STUs) have focused on electrifying city (urban) bus fleets due to the ease and cost-efficiency of setting up urban charging infrastructure. In this context, MSRTC’s decision to order 5,150 e-buses for rural operations is groundbreaking, rooted in this simple but uncommon logic—Why can’t citizens from rural areas, who serve as a backbone to Maharashtra’s economy, enjoy the same quality of service with AC e-buses as citizens in cities?
This bold move by MSRTC has not only positioned it as a pioneer but has also provided a blueprint for other STUs looking to undertake similar electrification interventions in the future.
So, how did MSRTC begin this transformation journey for its iconic red buses known as the Red Fairy or Laal Pari?
While electrification started with the procurement of 150 e-buses under the FAME II scheme in 2021, the true push for transitioning at this scale came with the Bombay High Court (HC) appointing a High Power Committee in 2022 to revive the operations of MSRTC. The committee submitted a revival plan to the Bombay HC which was subsequently approved. This particular plan outlined the need to scale up MSRTC’s fleet size from its existing 15,000 buses to 22,000 buses within just three years by the year 2025.
To achieve this, MSRTC opted for the Public-Private Partnership (PPP) model. The Corporation developed a plan to stagger purchasing of e-buses in two segments—5,150 e-buses and 500 diesel buses on Gross Cost Contract (GCC), and another 2,200 diesel buses on outright purchase.
This incorporation of 5,150 e-buses will also help them achieve a significant fleet electrification target above 25% by 2025, which aligns with the state electrification policy.
While the intent was set right from 2022, there are many lessons to be learned from the MSRTC’s journey, which was not without its challenges. Being one of the first STUs to take up electrification, the path towards it was lesser known.
When MSRTC set out to procure e-buses for district operations in 2022, no manufacturer was making e-buses to cater to the specific needs of rural operations. Majority of the e-buses were being manufactured for urban settings.
The Corporation then sought specific models of buses, by adding clauses in the tender for bus body specifications under AIS (Automotive Industry Standards) 34, 52, 153, 140 that have regular floor design and good ground clearance unlike some of the existing variants. This ensured that these e-buses were built with robust quality to navigate to navigate the narrow roads and difficult terrains in rural areas, where roads may not be in the best conditions.
While district and rural buses serve as the backbone of Maharashtra, serving the routes with medium to low demand with e-buses had to be taken up tactfully. To ensure that the buses procured do not end up running empty, MSRTC decided to procure two types of buses, keeping in mind traffic demand, ridership patterns, load factors, and headway.
The first type was 12m buses; – 2,800 of the total consignment were of this dimension. These buses are primarily tailored for high-traffic and high-demand scenarios, earmarked for express routes connecting major districts, metropolitan cities, and prominent pilgrim and tourist destinations.
The second type was 9m buses, totaling 2,350 vehicles, specifically allocated for with mid to low demand routes, emphasising connectivity between district headquarters, taluk-level towns, and villages. These routes often serve as vital lifelines for residents in more remote areas.
3. Selecting strategic locations for charging infrastructure
One significant challenge was selecting locations for charging infrastructure. Not all depots could support EV charging infrastructure due to high costs and power supply issues.
Thus, MSRTC chose depots based on these three criteria: depots with existing operations, ideally located to minimise dead kilometres, and those in close proximity to high-tension power supply lines.
By selecting depots that fulfilled these three criteria, they could reduce cost for extensive new electrical infrastructure development. Furthermore, depots with overnight bus parking facility for maintenance were also prioritised.
The depots were also given e-buses in a staggered manner to address any potential operational disruptions due to power supply failures. MSRTC decided that at any point, only 30%-50% of the selected depot fleet will be electric, while the remaining 70%-50% will consist of Compressed Natural Gas (CNG)/Liquefied Natural Gas (LNG) and diesel buses, serving as backup. However, in bigger cities where multiple depots are in proximity to one another, MSRTC intends to develop a few depots as 100% electric depots.
The total cost associated with this process is estimated at INR 650 crores, for which, MSRTC has sought financial assistance from the state government.
While e-buses are a sustainable choice for the future, to ensure financial viability, the route selection was a meticulous process.
MSRTC developed a strategy that focused on electrifying routes with the highest ridership, high earnings per kilometre, and the lowest bus replacement ratio. The effort to identify such routes was entirely in-house, drawing upon the extensive ground-level expertise and insights from various divisions within the Corporation.
The discourse of sustainable transport often focuses solely on urban areas and their residents, highlighting the need for infrastructure like electric buses, cycling tracks, e-vehicles, and so on.
However, with this one initiative, MSRTC has ensured that an entire generation of citizens from rural areas of Maharashtra will have their first experience in smooth, electric buses rather than noisy diesel-powered ones. This shift has the potential to redefine their perspective on the true benefits of a bus- a mode they will use not out of compulsion, but by choice.
As MSRTC moves forward with an alternative fuel strategy beyond electrification, by adding 50 CNG buses to its fleet and retrofitting 6,000 existing diesel buses to operate on LNG and CNG, the move could further push the cause of clean air in rural areas.
MSRTC’s overall shift to a Gross Cost Contract model for the 5,150 new e-bus and 500 diesel buses, will also enable it to achieve cost efficiency, something which all STUs are aiming for in the long run. The model helps to mitigate the risks associated with heavy up-front capital investment because the actual purchase of buses is not their responsibility and maintenance expenses e are also taken care of by the contractors.
With such multi-pronged reforms in place, MSRTC could set a steady course for the next few decades riding on the e-red fairy and being a role model for other transport operators across the country.
For more insights read the detailed report
Written by Donita Jose, Senior Associate, Communications and Development, ITDP India
With Technical Inputs from Aditya Rane, Senior Associate – Transport Systems and Electric Mobility, ITDP India

by admin
Estimated time to read- 6 minutes
The Union Budget for the financial year 2024-25 was released on July 23. Here are some of the key highlights on sustainable urban transport and development and what we feel about these proposals.
1. Continued support for National Clean Air Program
The National Clean Air Program continues to receive robust support, with INR 858.5 crores allocated for 131 cities. As part of this initiative, 100 cities are preparing detailed City Action Plans, and these same cities are actively implementing air quality improvement measures in accordance with their plans, supported by the allocated funds.
What we feel
We appreciate the continued commitment for implementation of the National Clean Air Program. The key component in the implementation roadmap for NCAP must include policy, technical, and budgetary support to states and cities. The support should be towards adopting parking policies, implementing parking management measures, and setting up low emission zones that focus on restricting polluting vehicles.
2. Taxonomy for Climate Finance
This budget spoke about the development of a taxonomy for climate finance for enhancing the availability of capital for climate adaptation and mitigation. This will support achievement of the country’s climate commitments and green transition.
What we feel
It is heartening to see the intent to create a Taxonomy for Climate Finance. The taxonomy must identify all sectors of sustainable mobility including walking and cycling which is usually overshadowed by the glamours of e-mobility. The taxonomy must also align with allocated budgets to support implementation and policies to ensure the longevity of the intervention.
It is also important to adopt a result-oriented approach for both NCAP and taxonomy so that tracking and reporting mechanisms can ensure that funds allocated for sustainable mobility are used effectively. This helps in identifying gaps and making necessary adjustments to improve project outcomes.
3. PM EBus Sewa Scheme: Boosting Electric Buses
The budget set aside INR1,300 crores specifically for the PM e-Bus Sewa scheme to introduce 1,000 e-buses in FY 2024-25 across various cities, taking it to a total of 1,500 e-buses under the scheme since its inception.
What we feel
It is heartening to see the increased commitment to electric buses and sustainable urban transport from last year’s allocation of only ₹20 crores. However, considering the acute shortage of urban buses in India, there is a need for a 15-fold scale-up of national programs like the PM-eBus Sewa scheme to ensure More Buses, Better Buses, and Green Buses in all cities.
4. Promotion of Electric Mobility
The Lithium has been fully exempted from customs duties as compared to the 2.5% – 10% custom duty rate in the previous financial year.
What we feel
Exempting custom duties on critical minerals like lithium and cobalt is a welcome step as it will lower the production costs of battery cells. This cost reduction directly translates into more affordable electric vehicles for consumers, supporting the goal of widespread EV adoption in India.
5. FAME Scheme: A Mixed Bag
The Faster Adoption and Manufacturing of Electric Vehicles (FAME) program has been a key driver for EV adoption. The program received INR 2,600 crores to promote the adoption of electric vehicles and enhance the manufacturing ecosystem for EVs in India. However, the scheme is ending in 2024.
What we feel
It is essential to note that while FAME received funding of INR 2,600 crores it is only to cover the remaining liabilities of Fame II. The funding allocation is for the conclusion of the scheme in 2024 with no announcement of FAME III in the budget. This shows the shift in the national government’s approach to subsidise overall electric mobility going forward and keep the focus on prioritized sectors like public transport.
6. Transit Oriented Development
Transit Oriented Development (TOD) was spotlighted in the budget. It mentioned that TOD plans for 14 large cities with a population above 30 lakhs were to be formulated, along with an implementation and financing strategy.
What we feel
We also welcome the TOD plans as these will create compact, walkable communities centered around high-quality public transport systems. It will maximise accessibility and convenience of public transportation, reduce reliance on private vehicles, and promote sustainable urban growth. To ensure the TOD plans are developed and implemented in coordination with all city agencies, it will be important to empower these cities with an operational Unified Metropolitan Transport Authority (UMTA) or a Green Mobility Cell. These entities should be empowered legally and financially to facilitate coordination, planning, and execution of sustainable transport initiatives among various agencies.
7. Creative redevelopment of cities & Cities as Growth Hubs
Towards the creative brownfield redevelopment of existing cities with a transformative impact, the budget stated that the government will formulate a framework for enabling policies, market-based mechanisms, and regulation.
The budget also highlighted working with states to facilitate development of ‘Cities as Growth Hubs’. This will be achieved through economic and transit planning, and orderly development of peri-urban areas utilising town planning schemes.
What we feel
The commitment to creative brownfield redevelopment and the development of ‘Cities as Growth Hubs’ is a commendable step towards sustainable urban transformation. The proposed framework for enabling policies, market-based mechanisms, and regulations will provide a solid foundation for revitalising existing urban areas, fostering economic growth, and improving living conditions.
The budget also captured the following-
The Union Budget 2024 is demonstrating a clear commitment to decarbonization through initiatives like the climate taxonomy and Transit-Oriented Development (TOD) measures, as well as continued support for the PM-eBus Sewa scheme.
While acknowledging these positive strides, we recommend that further attention be devoted to laying the foundational groundwork for pedestrian-friendly, cycling-friendly, and public transport-oriented cities. We hope the government will build upon the announced sustainable policies by implementing Low Emission Zones (LEZs), parking policies, and granting greater autonomy to Urban Metropolitan Transport Authorities (UMTAs). Higher support to electrification of public transport fleets is also a need of the hour.
By refining these finer details, we can collectively work towards a more comprehensive and effective sustainable transport framework.
Written by ,
Vaishali Singh, Programme Manager, E-mobility and Public Transport Systems and
AV Venugopal, Programme Manager, Healthy Streets and Partnerships
Edited by Donita Jose, Senior Associate Communications and Development

by admin
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.
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.
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.
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

by admin
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.
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
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.
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