ITDP India

Promoting sustainable and equitable transportation worldwide

10 Impactful Solutions to Improve India’s Air Quality

by

Air pollution in India has reached a tipping point, threatening the health and well-being of millions. Amid this growing crisis, one promising solution is the implementation of Low Emission Zones (LEZs)—designated areas where polluting vehicles are restricted to curb emissions and improve air quality. To help cities across India tackle this issue, ITDP India recently launched Low Emission Zone Basics, a comprehensive guide for creating cleaner, healthier urban environments. 

At the launch, experts from global organisations shared crucial insights on how LEZs can play a pivotal role in addressing air pollution, while also offering policy recommendations to guide India’s path to cleaner air. From improving data collection to enhancing public transport and promoting localised climate action, these strategies provide a roadmap for urgent and effective change. Read on for key takeaways from the experts who are shaping the future of India’s air quality. 

The experts include, Shashi Verma, Chief Technology Officer, Transport for London (TfL); Dr. Anju Goel, Associate Director at The Energy and Resources Institute (TERI); Parin Visariya, Deputy Manager at ITDP India; Dr. Sandra Wappelhorst, Senior Researcher at The International Council on Clean Transportation (ICCT), Berlin;  Sree Kumar Kumaraswamy, Program Director at World Resources Institute (WRI); and Dr. Vivek Vaidyanathan, Program Manager at Artha Global. 

1. Better research on sources of air pollution

Central government must invest in better collection and dissemination of data and research on the sources of pollution. To date, the public debate around pollution in India is clouded in fog with some suggesting it is because of Diwali and some suggesting is because of crop burning, which is fundamentally not true. Air pollution in Gangetic plains is far more complex and getting better evidence is something central government can work on – Shashi Verma, Chief Technology Officer, Transport for London (TfL)    

2. Need for multiple interventions

London’s air quality success stems from a series of cumulative interventions since the 1950s, starting with banning coal burning, introducing clean diesel programmes, and expanding LEZs. A major contributor to improvement was increasing the mode share of sustainable transport, which reduced overall vehicle numbers. The broader lesson is to have a comprehensive approach in addressing multiple sources of pollution. – Shashi Verma, Chief Technology Officer, Transport for London (TfL) 

3. State government must approve LEZs 

Pimpri Chinchwad, in Maharashtra has decided to implement an Environmental Protection Charge ranging from ₹100-750, for polluting vehicles entering the LEZs. But the enforcement of this requires collaboration with the Road Transport Officials (RTOs) and traffic departments. Currently, there is no provision within the transport department to address such violations, making the need for an enforcement mechanism essential. State-level approvals and notifications are also necessary to formally designate the area as a LEZ. State governments must play a supportive role by bringing all stakeholders together to develop a clear, actionable plan. – Parin Visariya, Deputy Manager at ITDP India 

4. Improve public transport

Public transport connectivity in most cities remains inadequate and requires significant upgrades. State support is crucial to ensure there is an increase in the number of buses and improvement in the overall network. – Parin Visariya, Deputy Manager at ITDP India

5. Package LEZs for health

One way to get faster acceptance of concepts like LEZs is to make the stakeholders focus on how it will improve health. Talking about its benefits in sensitive areas in terms of schools, places of worship, hospitals, works well in convincing city authorities to take this up. – Dr. Vivek Vaidyanathan, Program Manager at Artha Global 

6. Focus on funding clean air in rural areas

Currently the National Clean Air Programme funds go only to urban local bodies, where the concerns are more about road dust, vehicular emissions etc. But when it comes to rural areas, these funds are not applicable. Here the sources of pollution are also different like biomass burning. This is when state governments need to pitch in. Having only NCAP as a funding source won’t solve the problem. We need various other state level schemes.  – Dr. Anju Goel, Associate Director at The Energy and Resources Institute (TERI) 

7. Budget for climate at municipality levels

Cities must explore ways to tap into their existing municipal budget to start climate works. If all departments commit some amount to climate, it can be a starting point with no need to look outside for funds. For instance, in most municipalities, the roads budget is the highest- so it can be leveraged to implement action to create clean air. – Sree Kumar Kumaraswamy, Program Director at World Resources Institute (WRI) 

8. Develop state-level schemes

States must come up with innovative mechanisms like the Majhi Vasundhara initiative in Maharashtra where the state has decentralised climate action. Now be it a village or a city, through their own means, they can take up small ticket projects that work towards climate action. This kind of model of sourcing innovation from the ground up is an excellent example and state can play a facilitating role to enable thinking innovatively. – Sree Kumar Kumaraswamy, Program Director at World Resources Institute (WRI) 

9. Focus on creating a good narrative

Create a phased and gradual LEZ plan with clear timelines to allow citizens and businesses to have time to adapt. Offer financial assistance to low-income groups and small businesses to transition to compliant vehicles. Develop mobility programs like air bonuses to encourage alternatives to car ownership. Speak to all stakeholders and communicate the programme. – Dr. Sandra Wappelhorst, Senior Researcher at The International Council on Clean Transportation (ICCT), Berlin 

10. Start with CPCBs and non-attainment cities

When working with state governments, the Central Pollution Control Board is a good entry point, wherein they can enact some of the state-wide regulations and laws that’s applicable to all non-attainment cities. – Dr. Vivek Vaidyanathan, Program Manager at Artha Global

Low Emission Zone Basics

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

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

by

(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 

by

“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

by

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

by

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

Budget 2024: A Wishlist for Sustainable Transport by ITDP India

by

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

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

1. Ensuring allocation of Transport Budgets towards Sustainable Mobility  

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

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

2. Prioritising More Buses, Better Buses, Greener Buses 

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

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

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

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

3.Creating Walking and Cycling Friendly Indian cities  

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

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

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

4.Connecting the Dots: Seamless Integration

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

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

5. Pricing Pollution

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

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

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

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

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

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

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

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

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

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

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

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

A– Accessible and safe streets for all. 

B– Buses near everyone, everywhere, on time. 

C– Congestion and pollution free cities. 

Written by

Team ITDP India

Accelerating Urban Transport Reforms for Effective City Level Action

by

As published in Observer Research Foundation

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

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

National-Level Interventions: Setting the Vision and Funding Mandates 

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

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

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

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

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

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

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

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

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

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

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

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

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

Written by

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

Vaishali Singh, Manager – Transport Systems and Electric Mobility

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

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

by

As published in Economic Times.

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

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

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

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

Leasing of e-buses

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

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

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

The financial and operational advantages of leasing

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

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

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

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

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

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

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

Way Forward

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

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

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

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

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