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Old 19th December 2011, 16:37   #1
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Question Need help on starting a bus service on NH 4 between Pune and Satara

Gurus,

A relative of mine, knowing that I am passionate about vehicles and am active on TBHP, has asked me fetch some information on starting a bus service between Pune and Satara. He plans to buy a bus and deploy it to ferry passengers between Pune and Satara (the locations are not final yet). He needs help on knowing the following things:
  1. What is model on which such services are run?
  2. What permits are required to run such services?
  3. What are the challenges in starting this?
  4. What are the challenges in running this on an ongoing basis?
  5. If someone can help with gross math of this model.
Any help will be much appreciated.



Mods, I just hope I have not breached any rules of the forum.



Warm regards,
Dushmish
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Old 19th December 2011, 16:49   #2
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

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Originally Posted by dushmish View Post
A relative of mine, knowing that I am passionate about vehicles and am active on TBHP, has asked me fetch some information on starting a bus service between Pune and Satara. He plans to buy a bus and deploy it to ferry passengers between Pune and Satara (the locations are not final yet). He needs help on knowing the following things:
I hope your relative has done a bit of homework on this. Public Transportation in Maharashtra is nationalised - in short, only Government run Transport bodies can operate stage carriers in Maharashtra. The private operators are running what is called as "package" tour. But, I am not sure if a short route like Pune-Satara would attract passengers to pay high fares (tourist buses would have to charge higher fares to meet their operational expenses - of high taxes).
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Old 19th December 2011, 17:07   #3
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Quote:
Originally Posted by binaiks

I hope your relative has done a bit of homework on this. Public Transportation in Maharashtra is nationalised - in short, only Government run Transport bodies can operate stage carriers in Maharashtra. The private operators are running what is called as "package" tour. But, I am not sure if a short route like Pune-Satara would attract passengers to pay high fares (tourist buses would have to charge higher fares to meet their operational expenses - of high taxes).
Thanks Binaiks! What do you mean by nationalised? I see a lot of private buses plying between Mumbai and other cities. I am wanting to know the taxes one has to pay. Any site where it can be found.
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Old 19th December 2011, 17:47   #4
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

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Thanks Binaiks! What do you mean by nationalised? I see a lot of private buses plying between Mumbai and other cities. I am wanting to know the taxes one has to pay. Any site where it can be found.
Nationalised routes means only state run companies are allowed to run on those routes. Some states allow private permits on nationalised routes (due to the state's inabilities to run adequate buses). However, in Maharashtra, MSRTC is the sole operator legally permitted to operate on long routes.

The private buses you see running on main roads operate as "package tours" or as "tourist trips", not as Stage carriages. Stage Carriages are those which are allowed to run on a route, picking up passengers from way-side points and charge them according to distance travelled.

On the other hand, tourist buses are allowed to run between two fixed points - they are not supposed to pick up passengers en route, or cannot issue tickets for the same. The bus is supposed to carry the same passengers on its return journey as well.

About taxes, please refer to the Maharashtra MVD website - it might have some information.
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Old 19th December 2011, 19:14   #5
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

Here is another thread with a whole lot of information that your friend can benefit from.
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Old 19th December 2011, 19:22   #6
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

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Originally Posted by binaiks View Post

On the other hand, tourist buses are allowed to run between two fixed points - they are not supposed to pick up passengers en route, or cannot issue tickets for the same. The bus is supposed to carry the same passengers on its return journey as well.
Err - Neeta, Metrolink, Raj Travels, etc - how do they exist?
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Old 19th December 2011, 19:36   #7
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

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Err - Neeta, Metrolink, Raj Travels, etc - how do they exist?
They pay something called "bribe" every day/week/month to the officials concerned. Omni bus operations exist across the country, and they outnumber state buses in many routes - yet, it is a fact that Omni bus operations are illegal. No operator is allowed to carry passengers like the way Omni bus operators do, without a stage carriage permit.

Stage Carriage Permit is issued by the state governments depending on their nationalisation policy. Permits on interstate routes depend on the agreement between the states concerned.

In the current Kerala-Karnataka Interstate agreement, there is no provision for private stage carriages (there was a provision earlier). However, private buses still run on the Kasargod-Mangalore route based on a high court verdict, which allowed the buses to run until the expiry of permit (Stage Carriage permits are usually valid for 5 years, after which it would be renewed on the basis of the prevailing state policy).
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Old 20th December 2011, 20:55   #8
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

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Here is another thread with a whole lot of information that your friend can benefit from.
Thanks GTO for the pointer. Thanks Binaiks for all the information. though I am not sure if the Neetas of the world pay a bribe so blatantly and advertise their services at the same time.
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Old 20th December 2011, 21:02   #9
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

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Thanks GTO for the pointer. Thanks Binaiks for all the information. though I am not sure if the Neetas of the world pay a bribe so blatantly and advertise their services at the same time.
In fact, not just Neeta, every omni bus operator in India has to pay bribes to operate their service - just because their service is not legal. (There are some routes in Bihar/WB area, which are permitted to operate on some notified routes).
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Old 21st December 2011, 10:27   #10
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

You could go through another very detailed thread here -

For taxation info in Pune, check Link.

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Originally Posted by binaiks View Post
They pay something called "bribe" every day/week/month to the officials concerned. Omni bus operations exist across the country, and they outnumber state buses in many routes - yet, it is a fact that Omni bus operations are illegal. No operator is allowed to carry passengers like the way Omni bus operators do, without a stage carriage permit.

Stage Carriage Permit is issued by the state governments depending on their nationalisation policy. Permits on interstate routes depend on the agreement between the states concerned.
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Originally Posted by binaiks View Post
In fact, not just Neeta, every omni bus operator in India has to pay bribes to operate their service - just because their service is not legal. (There are some routes in Bihar/WB area, which are permitted to operate on some notified routes).
Thanks for an eye opener post. I never knew that all of this was illegal. So, if I were to start an intercity coach service from Bombay to Goa, there is no way that I can do it legally?

Last edited by moralfibre : 21st December 2011 at 10:29.
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Old 21st December 2011, 11:34   #11
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

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Thanks for an eye opener post. I never knew that all of this was illegal. So, if I were to start an intercity coach service from Bombay to Goa, there is no way that I can do it legally?
Sadly, no. There are no "legal" ways you can start an intercity coach service in the route you mentioned. Like I mentioned earlier, some states permit intercity coach operations, even on nationalised routes. There is no way you can do it legally in Maharashtra or any state in south india.
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Old 21st December 2011, 12:01   #12
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

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Sadly, no. There are no "legal" ways you can start an intercity coach service in the route you mentioned. Like I mentioned earlier, some states permit intercity coach operations, even on nationalised routes. There is no way you can do it legally in Maharashtra or any state in south india.
I just checked that Goa has an option to obtain a stage carriage permit. I am assuming they would want to know the route before granting a permit? If I start a service in Goa that ends in Bombay, that wouldn't be permitted either by Maharashtra state authorities? How does that work out?

Directorate of Transport

(Check section: Fees for Permits other than Temporary Permit, their renewal & endorsement)
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Old 21st December 2011, 13:10   #13
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

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Originally Posted by moralfibre View Post
I just checked that Goa has an option to obtain a stage carriage permit. I am assuming they would want to know the route before granting a permit? If I start a service in Goa that ends in Bombay, that wouldn't be permitted either by Maharashtra state authorities? How does that work out?
Interstate operations are governed by an "interstate transport agreement" signed between the states concerned. All permits on interstate routes are subject to provisions contained in the agreement. The interstate agreement with Maharashtra and Goa (see here) does not have a provisions for operation of private buses - only state companies are permitted to operate on interstate routes between these states.

Goa permits private stage carriers on intra-state routes, and the transport department website states the procedures to obtain such permits only.

About obtaining stage carriage permits: An application for a stage carriage permit has to be made indicating the details of the bus (registration number, chassis number, seating capacity, etc), the route the bus would operate on (including via points), and the timings. The permit would be allotted subject to the nationalisation policy of the state concerned (in case of Kerala, there are 47 notified routes, where only state undertaking is permitted to operate buses) and settlement of timings (your timings should not overlap with other operators on the route, and the time taken between via points should be subject to norms).

In Kerala (where a good 75% of public transport is private run stage carriers), KSRTC has the first right of refusal when it comes to permits that have even a 5% overlap on nationalised (notified) routes. The notified routes in Kerala are rather vague, and the routes are often 100s of kms long. A good portion of main routes in Kerala are notified routes, and no new stage carriage permits are issued on these routes. Only old permits are being renewed, and that too subject to court litigations. Even an extra trip is considered a new service, and permits are often rejected!
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Old 23rd December 2011, 22:06   #14
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

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..... - yet, it is a fact that Omni bus operations are illegal. No operator is allowed to carry passengers like the way Omni bus operators do, without a stage carriage permit. ....
In TN omni bus operation is completely legal and they are issued permits to run within state.
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Old 23rd December 2011, 22:31   #15
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Default Re: Need help on starting a bus service on NH 4 between Pune and Satara

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In TN omni bus operation is completely legal and they are issued permits to run within state.
Are they issued route permits? AFAIK, they are not allowed to operate in the manner they run.
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