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Are Indian Cities Budgeting Enough for Sustainable Transport? A Case from Pimpri Chinchwad

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(Part 1 of Municipal Budget Analysis Series)

Annual municipal budgets shape how the city’s resources- the taxpayers’ money- are allocated to shape the city and in turn serve its residents. However, the question arises: do the city’s annual budgets reflect investments in mobility for cleaner air and congestion-free streets, which have been challenging for most cities? Such budget allocations are even more critical for rapidly urbanising Indian cities. 

Pimpri Chinchwad is one of India’s fastest-growing tier-2 cities. Through its ambitious policies, plans, and projects, Pimpri Chinchwad has been actively striving to build a robust sustainable urban mobility system in the city.  Pimpri Chinchwad Municipal Corporation’s (PCMC) bold policies, including the Non-Motorised Transport Policy (2021) and Pune Metropolitan Region’s Comprehensive Mobility Plan (2018), aim for 90% of trips to be made by walking, cycling, or public transport by 2036. PCMC also aims to reduce private vehicle trips by 18%, focusing on a fair distribution of road space between all users and a shift towards sustainable urban transport modes such as walking, cycling, and public transport. However, as per Parivahan data, with nearly 90 vehicles per 100 residents, congestion, road safety, and air quality remain major challenges.  

PCMC is well aware of this alarming figure and is making every effort to address it. With the further expansions of the existing 54 km of Bus Rapid Transit and the 7 km of Metro, along with 16 km of suburban rail, and more than 100+ km of redesigned healthy streets, the city is reshaping how people move.  

While in the last decade, the city has made strides with its sustainable transport initiatives, how can we ensure it remains committed to creating safer streets, reducing congestion and improving air quality? 

One key indicator of the city’s commitment to its sustainable transport goals is how much allocation of the municipal funds goes to various transport modes, especially the sustainable ones – walking, cycling, and public transport.  

PCMC collaborated with ITDP India to analyse the city’s annual budget allocations from 2022-23 to 2024-25 (across a period of three years) focusing on mobility projects in the city. In June 2024, ITDP launched the ‘PCMC Municipal Budget Analysis Report’ capturing the insights from this research project. 

Why was the study conducted?

The study was conducted to gain a nuanced understanding of historical budget allocation trends, assess current allocation patterns, and identify gaps and opportunities for future provisions towards urban mobility. It aimed to establish a detailed report of funding requirements through projections and provide informed recommendations to enhance the upcoming annual mobility budget allocations. Additionally, this study was undertaken in response to the lack of such detailed case studies in India, highlighting the need for more structured approaches to urban mobility budgeting and planning. 

How did we do it?

The team meticulously examined the city’s annual budgets for the past three years, scrutinising each line item related to transport and categorising them into ‘sustainable and non-sustainable modes’ of transport. Sustainable modes include projects that encourage walk, cycle, and use of public transport. Non-sustainable modes include items which encourage use of private motor vehicles and prioritise private vehicle movement over other sustainable modes. 

What were the key observations?

1. Transport allocations inching towards its sustainable transport goals 

With a total municipal budget of ₹8,676 crore, PCMC has one of the highest per capita budgets allocated in the state. In 2024-25, 17% (₹1475.4 crore) of the annual budget was allocated to transport– an increase in proportion to the overall increase in municipal budget as compared to the previous year. Additionally, over half of the current transport budget is now allocated to sustainable transport infrastructure, up from 48% (₹540 crore) to 56% (₹818 crore) as compared to the previous year. 

Graph showing an upward trend in PCMC’s annual transport allocations, along with the sustainable and non-sustainable allocation split 

2. Significant increase in allocation towards walking-cycling infrastructure 

The non-motorised transport (NMT) budget allocation of ₹439.7 crore accounts for more than half of the sustainable transport budget and one-third of the entire transport budget! As compared to the previous years, the city has more than doubled its allocation towards NMT from ₹217.9 crore in 2023-24 to ₹439.7 crore in 2024-25 which is a move in right direction. This shift is mainly due to the allocations for the ambitious ‘Harit Setu’ project that aims to make PCMC a 15-minute walking-cycling neighbourhood city and ‘Urban Streetscapes Programme’ (USP). In addition, this also includes allocations for initiatives like cycle sharing systems, parking management, and maintenance of infrastructure. 

Sankey graph showing the detailed transport allocations for the year 2024-25

However, PCMC needs to allocate a similar amount consistently every year towards creation of footpaths and cycle tracks to achieve the goal of 90% of all trips by sustainable modes by 2036. This budget will support the transformation of 25 km of major streets and 100 km of minor streets each year. Only by maintaining this aggressive pace, can PCMC systematically transform its streets over time and move closer to achieving the NMT Policy’s targets. 

3. Need for more investment in public transport 

While there have been significant efforts to improve walking and cycling, there is a gap in funding for more public buses. There is still a need to make buses more accessible to everyone. The city funds its public bus system by providing Viability Gap Funding (VGF) to the city’s transport undertaking – Pune Mahanagar Parivahan Mahamandal Ltd (PMPML). However, the city’s budget allocation for buses has seen a slower increase, rising from ₹231 crore in 2022-23 to ₹359 crore in 2024-25 for buses over the four years. According to PMPML’s Vision 2027, the city currently has around 26 buses per lakh population, which is half of the national guideline of 60 buses per lakh population and an exponential increase is needed to meet these goals. In addition to the operational expenditures, PCMC needs to allocate an estimated ₹730 crore annually to achieve target bus fleet of 2850 size (as per the recommended MoHUA standards) by 2030. 

Comparative chart showing the non-sustainable and public transport allocation trends 

4. Car-centric investments still dominate the budget 

As one of the fastest-growing cities, Pimpri Chinchwad has also prioritised the development of new streets to ensure connections to the new villages. As a result, the private motor-vehicle-centric road expenditure is reasonably high. It is critical for such cities to ensure this new development is equitable and caters to the needs of pedestrians, cyclists, and public transport. The allocation of budget for car-centric infrastructure, such as flyovers and multi-level car parks, is consistently high. At ₹657 crore, PCMC is allocating twice as much for non-sustainable transport than that for public transport. Surprisingly, some programs, like Sustainable Urban Transport Projects (SUTP) and Urban Transport Funds (UTF), earmarked for sustainable development have budgetary provisions for car-centric projects. A 100% of the ₹4.5 crore under SUTP and 51.6% of the ₹262.5 crore under UTF are allocated towards non-sustainable transport projects like carriageway and flyover development. 

In a Nutshell

The substantial doubling of funding for walking and cycling projects highlights PCMC’s commitment to its NMT Policy goals. However, public transport remains underfunded with a visible shortfall of buses and a dire need for improved quality of service in the city. On the contrary, car-centric projects continue to receive disproportionately high funding. To achieve its goals, PCMC should not only increase funding for sustainable transport initiatives but also simultaneously reduce the allocations for high-value car-centric infrastructure. This can be achieved through reallocation of existing budgets towards sustainable transport projects. 

The study also provides recommendations for a sustainable transport-focused budget, exploring innovative revenue sources like parking management, municipal bonds, national and international grants. It also emphasises the need to consistently allocate budgets for walking, cycling, and public transport projects to help PCMC maintain its status as a leader in sustainable transport in India.  

Since presenting the findings at the Smart Cities Mission’s National Conference in January 2024, the team has also been focusing on helping cities with securing additional funding through this data-driven approach. In the next blog in the series, we’ll take a deep dive into the process of the budget analysis including methodology, limitations, and the challenges faced while conducting the study. Stay tuned! 

Written by Donita Jose, Senior Associate Communications

Edited and technical inputs by Rutuja Nivate, Associate- Urban Development and Pranjal Kulkarni, Programme Manager – Healthy Streets and Compact Cities

Three Things Indian Cities Need to do Now to Start the Fight Against Vehicular Pollution 

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“Winter is coming”—a phrase made famous by the sitcom series Game of Thrones—has found an eerie resonance in India. Much like how the people of Winterfell dreaded the arrival of winter and the mythical evil creatures- the White Walkers, in India, it is not a creature, but the polluted air itself, that is dreaded.  

Though it’s barely November, a thick layer of pollutants is already blanketing the skies, and all eyes are searching for the culprits. Is it construction waste, crackers, or crop burning? However, one source, which remains largely overlooked, and often slides through the cracks, while continuing to remain the biggest challenge- is vehicular pollution. A recent study by the Indian Institute of Tropical Meteorology confirms this. Conducted in the month of October 2024, the study revealed that stubble burning contributed only 1-2% of Delhi’s total air pollution in the month, while vehicular emissions accounted for a significant 11.2% – 14.2%. This makes vehicle emissions the single biggest identifiable, yet silent contributor to poor air quality, which affects the Indian cities not just in winter but year-round—making it the most urgent problem to address. 

Infact, studies being released year after year all indicate how rapidly the situation is deteriorating. The latest report reiterating this, is the Greenpeace report, which spotlights the alarming situation in South Indian cities specifically, which conventionally were believed to have cleaner air. The data from this report suggests the PM2.5 level in these cities is also no better for living standards, with a few like Hyderabad, Chennai, and Visakhapatnam, seeing levels up to 9- 10 times higher than WHO standard. As explained above, a significant part of these rising pollution levels is contributed by the growing population of vehicles.  

While the sustainable transport sector has long advocated for walking, cycling, public transport, and clean vehicle technology as solutions, it is clear that combating vehicular pollution requires a multifaceted approach beyond that. This blog outlines three key Mantras (strategies) that cities can adopt right now to tackle this growing menace. Some of these have already been implemented/ in the process of implementation in our lighthouse city, Pimpri Chinchwad, which stands as a good example for many other growing Indian cities. 

1. Shift to sustainable modes such as walking, cycling, and public transport  

First, cities should focus on creating not just isolated stretches but comprehensive networks of footpaths and cycle tracks. A well-connected network makes sustainable transport options more convenient and accessible, encouraging people to shift to these modes.  

However, providing just infrastructure may not be enough in most cases. Cities must invest in raising awareness through campaigns to nudge behavior change. Policies and legislative reforms are also crucial to embedding these practices into the city’s fabric. 

What’s a good model to emulate? Many global cities, such as Singapore, have initiated the concept of 15-minute cities. Some Indian Cities have had the chance to adopt this concept, leveraging existing initiatives like the Harit Setu project in Pimpri Chinchwad, which aims to enhance walking and cycling infrastructure in the city. Here, the plan is to make a localised network of connected footpaths and cycling tracks within smaller neighbourhoods, across the city so that people can simply opt to walk or cycle for short distances. Through such interventions, they also get sustainable options for last- mile connectivity. 

A glimpse of Linear Garden street, one of the ideal streets in PCMC which prioritises pedestrians and cyclists

However, while walking and cycling provide a sustainable alternative for short trips, they alone will not reduce congestion or pollution. For longer trips, more and better buses which connect the many networks of roads are the need of the hour to alleviate pollution and congestion. Moreover, improving bus services, including their frequency, reliability, and coverage, is crucial. Buses should seamlessly integrate with other transport modes, such as metro systems, footpaths, and cycle tracks, creating a comprehensive and efficient transport network. This interconnectedness enables commuters to make longer journeys more conveniently, thus making public transport a more attractive option. 

While these suggestions might shift a chunk of road users to sustainable modes, there will still be a section who would opt to use personal/private vehicles for travel because of its convenience. To address the emission concerns for that segment, incentivising cleaner vehicles will be an option.  

2. Incentivise people to use cleaner vehicles

Alongside promoting sustainable modes of transport, cities need to encourage the use of cleaner vehicles. This can be done in three ways: transitioning to cleaner technologies, scrapping older polluting vehicles, and building robust electric vehicle (EV) infrastructure. 

India has already taken a step in this direction by adopting Bharat Stage-VI (BS-VI) emission standards, which significantly reduce emissions from new vehicles. However, cities can push this further by promoting electric vehicles (EVs). Local governments should implement strong scrappage policies that incentivise owners of older, polluting vehicles to retire and scrap them in exchange for financial benefits or rebates on EVs.  

Cities also need to upscale their EV infrastructure, particularly by setting up widespread charging stations. A comprehensive EV Readiness Plan can guide cities in developing this infrastructure and ensuring that the transition to EVs is smooth and well-supported. 

For example, Pimpri Chinchwad’s Electric Vehicle Readiness Plan 2023 outlines some of these, by setting a goal of having 30% of the new vehicle registrations in city shift to EV by 2026.  They are doing so by establishing 100 EV charging stations and offering incentives for e-auto drivers. Property tax rebates are also being offered to those setting up charging point in their properties. Furthermore, the PCMC’s and Pune’s shared bus service, Pune Mahanagar Parivahan Mahamandal Ltd (PMPML), already operates 473 e-buses—India’s third-largest fleet—and is continuing to expand its fleet. These efforts – both on the front improved vehicle technology and on the front of emission reduction through improved public transport, not only reduce emissions but also set the stage for a future where EVs become the primary mode of motorised transport. 

Cities infact can go a step further, to effectively promote the use of cleaner vehicles. They can go for a dual approach of simultaneously making it more challenging to rely on personal vehicles.  

An electric bus from PMPML fleet

3. Discourage the use of personal vehicles through pricing parking and LEZs 

Cities must make it harder for people to rely on private vehicles, especially older, polluting models. Two effective ways to achieve this are by pricing parking and establishing Low Emission Zones (LEZs). 

Proper parking management can reduce the number of vehicles on the road by making it expensive to park in public spaces. When parking fees are levied, people think twice before using their cars, potentially avoiding the trip, opting for shorter trips, using public transport or finding other alternative solutions instead. This approach not only discourages unnecessary vehicle use but also frees up critical street space for creating vibrant public spaces on street. When authorised designated spots are demarcated by the city on the streets, it further reduces the time and fuel wasted in searching for a parking spot.  

Effective parking management can deter vehicle use, while LEZs take it a step further by restricting the most polluting vehicles from entering key areas. Together, they provide a strong mechanism to reduce vehicular emissions. 

In an LEZ, only vehicles with low or zero emissions—such as electric vehicles or those that meet the recommended emission standards (BS-VI)—are allowed to enter. LEZs can be city-wide or focused on strategically selected areas, making them an effective tool for cutting emissions in densely populated regions. 

For instance, in cities like London there has been a drastic reduction. As per the Mayor’s report, London’s Ultra Low Emission Zone (ULEZ), launched in 2019, has led to a 44% reduction in nitrogen dioxide levels and a roughly 30% decrease in traffic in central areas, alongside a 21% increase in cycling. 

In India, a study by ITDP India and ICCT in Pimpri Chinchwad found that restricting pre-BS-VI vehicles in a designated LEZ could reduce PM 2.5 emissions by up to 91% within a year (if all the pre-BS-VI users switch to EVs). Without such measures, pollution levels will decrease by only 50% in the next five years, under current practices (which involves the expected business as usual gradual natural transition to BS-VI). 

Designated parking spaces created on a street in PCMC

While these three Mantras provide a holistic approach to combat vehicular emissions, acknowledging the issue is the first step.  We urge cities and policymakers not to let air pollution caused by vehicles fade into the background or be treated as a seasonal issue. Addressing vehicular emissions requires year-round effort—mode shift, cleaner vehicle technologies, and Low Emission Zones must work in tandem to tackle pollution from all angles. 

Written by Donita Jose, Senior Associate, Communications and Development, ITDP India

With technical inputs from Parin Visariya, Deputy Manager at ITDP India

Answers to Some Common Questions About Low Emission Zones

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With the idea of Low Emission Zones (LEZs) gaining steam in India, here are a few concepts on the Legal, Institutional, and Technological aspects of vehicular emission.

A recap of Urbanlogue 4.0 Episode 2

LEZs are the need of the hour to arrest the invisible yet harmful impact of vehicular pollution. However, the entire subject can be challenging to grasp. Alongside figuring out the enforcement technology and monitoring, in India, data quality and impacts on marginalised communities add to the complexity. 

On September 18, ITDP India and ICCT hosted a webinar featuring six experts, moderated by Amit Bhatt, India Managing Director, ICCT, wherein they unwrapped these concepts by sharing their journeys from managing air/vehicular pollution in cities like Delhi, Pimpri Chinchwad, and Surat, alongside insights from Brussels and Seoul. You can watch the full webinar here. 

Here are seven frequently asked questions around Low Emission Zones, which were answered during  the webinar. 

1. What are the technologies available to enforce Low Emission Zones and which is best suited for Indian context? 

Parin Visariya, Deputy Manager at ITDP India, highlighted two key enforcement methods for India: Automatic Number Plate Recognition (ANPR) and Global Navigation Satellite System (GNSS). 

“What’s currently feasible in India is ANPR, which uses cameras to read vehicle number plates and deduct fees for entering Low Emission Zones,” Visariya explained. GNSS, an alternative, connects to an on-board unit inside the vehicle via a cellular network to charge fees, though the unit costs INR 8,000-10,000. 

Srinivas Ganji, Solution Delivery Director (Urban Transport), Arcadis, discussed the challenges of both. ANPR faces issues like low visibility due to weather, traffic congestion, and low-light conditions. However, due to improved algorithms and infrared cameras, the efficacy of ANPR system is close to 90%.  

Regarding GNSS, Ganji pointed out a few concerns. “A lot of incentives will have to be given to maintain the onboard unit. Privacy is also a concern as all movements can be tracked and it’s still a question on who will bear the charges of transmission of the data.”  

2. Are our vehicle emissions measuring methods robust enough? 

Vaibhav Kush, Researcher at ICCT, highlighted the importance of accurately monitoring emissions for implementing LEZs. Currently, India measures pollution at two stages: during vehicle prototype testing before the production and through Pollution Under Control (PUC) checks. However, these methods only reflect emissions under controlled conditions, either in labs or when vehicles are stationary. Neither show actual pollution levels emitted. Factors like load, maintenance, driving habits, road surface, traffic congestion impact emissions. 

ICCT’s 2022 study in Delhi using the roadside sensors revealed a significant gap between tested and real-world emissions.   

3. What are the various legal routes to implement LEZs  

Vaibhav Kush, further elaborated on the legal routes to establish LEZs. He explained that LEZs require legal backing for notifying the LEZ area, restricting polluting vehicle type, imposing fines and more. There are legal provisions available at national, state and city level. It depends on which government is initiating it. Vaibhav highlighted the cases of vehicle restrictions implemented in Delhi, Taj Trapezium Zone in Agra, Kevadia in Gujarat. He also highlighted a case where judiciary (Supreme Court) ordered the Delhi government to levy the environment compensation charge. 

He highlighted that the Air Act of 1981, Central Motor Vehicle Act of 1988 and state laws like Maharashtra Municipal Corporation Act 1949, can enable LEZ implementation. 

4. How robust should the city’s pollution monitoring network be? 

Ronak Sutaria, Founder and CEO, and Kevin Joshi, Product Engineer and Researcher, from Respirer Living Sciences, emphasised the need for robust and dense pollution monitoring networks to implement LEZs. For Surat Municipal Corporation (SMC), they deployed low-cost monitoring machines to measure PM 2.5 and 10 across 20 locations, focusing on densely populated areas. The data was shared with SMC and revealed nuanced results—PM 2.5 levels spiked during morning rush hours at certain junctions, while industrial areas peaked in the evening, and commercial zones showed higher levels during weekends. Regular analysis enabled tailored decisions and actions. 

“We need data analytics specialists, to help city corporations make informed decisions,” Joshi stated. 

On data accuracy, Ronak also highlighted that it is important to understand the purpose of using the data. Based on technologies and their cost, data accuracy can vary between 70%-90%.  

5. Is crowdsourcing of pollution data the way ahead for monitoring and predicting pollution levels in micro levels? 

Dr Suraj Ghosh, Associate Counsellor from CII- ITC Centre of Excellence for Sustainable Development, shared that their pollution monitoring and forecasting model was built on crowdsourced data. Their new model integrates emission inventories, meteorological data, live traffic, ambient air quality, and sensor data. By applying the Chemical Transport Model, they can predict pollutant levels for the next 72 hours, which aids measures like the Graded Response Action Plans. 

Their model achieves a resolution of 1 km x 1 km down to zone and ward levels, with the potential to enhance accuracy to 200 meters, though data quality remains a concern. “To improve accuracy of forecasts, we need good data,” he shared. 

6. What can cities in India learn from international cities like Brussels, Seoul, and London? 

Anindita Ghosh, Senior Researcher, UITP, shared several insights from different cities’ LEZ experiences. In Brussels, citizens were proactive in pushing the government to implement LEZs. In Seoul, LEZs were introduced only in the Business Zone, a model that could work in India as well. 

In all these cities, including London, effective communication played a vital role. “Engaging citizens consistently is key. Making them part of the process is essential,” Ghosh said. Various tools such as leaflets, videos, and advertisements were used extensively, with communication beginning 2-3 years before implementation. Efforts were also made to include marginalised communities, a practice that should be adopted in India. 

7. How can we address equity issues on marginalised communities while implementing LEZ? 

Globally, cities have provided incentives to encourage the transition to cleaner vehicles. Cities have provided free public transport passes for two years. Financial incentives are priortised for e-cycles and small freight vehicles for businesses, subject to polluting vehicles being scrapped. Incentives for personal cars are avoided to reduce congestion. All cities invest heavily in improving public transport, walking and cycling infrastructure. Indian cities, similarly, must priortise to improve public transport (especially bus transport) and offer target incentives after analysing the budget. 

Watch this space for more on Low Emission Zones! Join our Whatsapp group now for more webinars and talks!


Team Urbanlogue 

Written by Donita Jose, Senior Associate, Communications and Development, ITDP India

With technical inputs from Parin Visariya, Deputy Manager at ITDP India

Gaav tithe Rasta, Rasta tithe E-bus: Where there is a road, there will now be an e-bus

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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. 

Why is this important? 

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? 

How it all began 

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. 

Lessons from MSRTC’s Journey

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.

  1. Ensuring manufacturers customise bus body specifications for rural needs 

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.  

  1. Identifying the right types of buses  

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. 

  1. Selecting the optimum routes to ensure success 

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. 

Future of the Red Fairy  

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

Union Budget 2024: Key highlights for sustainable transport

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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. 

ITDP India’s Sustainable Transport Wishlist

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The budget also captured the following-

  1. Street Markets : Building   on   the   success   of   PM   SVANidhi   Scheme   in transforming   the   lives   of   street   vendors, our   Government envisions a scheme to support each year, over the next five years, the development of 100 weekly ‘haats’ or street food hubs in select cities. 
  1. Infrastructure investment by state governments : Encourage states to provide support of a similar scale for infrastructure, subject to   their development priorities. A provision of INR 1.5 lakh crores for long-term interest-free loans has been made this year also to support the states in their resource allocation.   
  1. Continued support for Smart cities : The budget has shown a continued commitment towards Smart Cities Mission by allocating a capital outlay of INR 2237 crores. 

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