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Old 6th April 2010, 20:45   #1
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Default All About LCVs and school buses-my one time pet project

(Disclaimer: This is entirely my views that I am sharing with you on that project which i did. I am not promoting or marketing any kind of tata products or any other products here, but just sharing on what goes on in a basic research project. The buyers of commercial vehicles in this segment are advised to check out their preferences/requirements before making their final choices. I will not be responsible if any thing goes wrong after vehicle purchase just by reading this report. Individual preferences may vary.)

This was a thesis project which I did last year working as a trainee in Tata Motors, commercial vehicles. Of course, as an MBA student, NOT an employee.

Some excerpts:

ABSTRACT:
  • A school bus is a bus used to transport children and teenagers to and from school and school events. Children may travel to school on regular public bus services. In some cases public bus services may run field trips and high school athletic events.
  • The major producers of buses in India are Ashok Leyland and Tata Motors whereas Swaraj Mazda, Eicher and Hindustan Motors have made a big name in manufacturing mini-buses. However there are huge sub-categories of buses like Commuter Bus, School buses, Electric buses and so on. In India, CNG buses have occupied the huge market thus making it an fuel efficient and environmental friendly vehicle.
  • The school bus segment-one of the most important money spinner for commercial vehicle manufacturers is ever increasing day by day.
  • After the tragic accident involving a private contract carriage bus falling into Yamuna river carrying school students of Ludelo Castle School, New Delhi in late 90s in which 28 kids perished, the government of India listed certain strict safety, technical and road worthiness rules and regulations for schools and commercial vehicle manufacturers regarding the design and layout of school buses to be purchased by schools for ferrying students and teachers in the upcoming years.
  • Commercial vehicle manufacturers took this market as a huge opportunity to offer factory made fully built buses complying with all the design and safety standards with certain teacher and student friendly features (mentioned in the comparison chart) at nominal price segments with various seating capacity options, that is 16 seater, 25 seater, 32 seater, 40 seater and 52 seater with diesel and CNG options.
  • Special emphasis in this project have been laid on CNG buses since most of the buses, travel in Delhi and NCR regions where CNG fuel has become a necessity to get permits and passing certificates by the transport departments of Delhi and UP.
  • Swaraj mazda was the first of the manufacturers to come out with various models of factory built school bus called T3500 supreme and currently enjoys more than 50 % market share in this segment. Subsequent years also saw eicher and Mahindra with similar products, followed by Tata City ride in 2002 based on a 407 chassis.

DESIRED AREA OF THESIS:
  • MARKET RESEARCH STUDY
TITLE OF THESIS:
  • LCV market in Western U.P. with special reference to Tata Vehicles (Strategies to increase volume and market share of Tata Motors buses in C.B.S.E. Schools of Noida and Ghaziabad)

RESEARCH OBJECTIVE:
  • The school bus segment-one of the most important money spinner for commercial vehicle manufacturers is ever increasing day by day.
  • After the tragic accident involving a private contract carriage bus falling into Yamuna river carrying school students of Ludelo Castle School, New Delhi in late 90s in which 28 kids perished, the government of India listed certain strict safety, technical and road worthiness rules and regulations for schools and commercial vehicle manufacturers regarding the design and layout of school buses to be purchased by schools for ferrying students and teachers in the upcoming years.
  • Commercial vehicle manufacturers took this market as a huge opportunity to offer factory made fully built buses complying with all the design and safety standards with certain teacher and student friendly features (mentioned in the comparison chart) at nominal price segments with various seating capacity options, that is 16 seater, 25 seater, 32 seater, 40 seater and 52 seater with diesel and CNG options.
  • Special emphasis in this project will be laid on CNG buses since most of the buses travel in Delhi and NCR regions where CNG fuel has become a necessity to get permits and passing certificates by the transport departments of Delhi and UP.
  • Swaraj mazda was the first of the manufacturers to come out with various models of factory built school bus called T3500 supreme and currently enjoys more than 50 % market share in this segment.
  • Subsequent years also saw eicher and Mahindra with similar products, followed by Tata City ride in 2002 based on a 407 chassis.
  • However, recently with the advent of high tech CNG buses from Ashok Leyland called stag and lynx, Tata motors is facing tough times and is eventually losing out an opportunity to competitors in the school bus market. On February 16, 2009 the company launched an assault in the form of 909 CNG, 909 diesel marcopolo and 912 EX BS 3 vehicles, aiming directly at Swaraj Mazda T3500 and poised to capture a big chunk of 32-seater and 40 seater bus market with aerodynamic, efficient and safe design that complies to all the rules and norms laid down by the government of India.
  • Tata motors, by far a leader in Indian commercial vehicle market with more than 60 % overall share, current enjoys a miniscule 13-15 % share in the school bus segment and the project aims to increase this to about 20-25 % in long term by directly aiming at swaraj mazda, the manufacturer which enjoys a monopoly in school bus market since it offers a wide range of buses from 16 seater to 52 seater in both diesel and CNG versions, which Tata motors previously did not have.
  • However with the above 3 launches, tata directly aims to take on Swaraj Mazda and Eicher through 410 EX, 410 EX CNG, 712 EX, 909 EX CNG 909 MARCOPOLO, 912 EX and various models of starbus and cityride in the school bus segment aimed to provide effective, reliable and efficient transport solutions to schools.
INTRODUCTION TO THE AREA OF RESEARCH:
  • Direct interaction with the transport in charge and principals of C.B.S.E. schools while conducting this research survey and tacking their feedback on the usage, sales satisfaction, product satisfaction levels and after sales service satisfaction levels of 16 seater, 25 seater, 32 seater and 40 seater school buses of Tata Motors and competitors like Eicher, Swaraj Mazda, Mahindra and Ashok Leyland.
SCOPE OF THESIS WORK:
  • C.B.S. E. schools of Noida and Ghaziabad
RESEARCH METHODOLOGY:
  • Primary research:Collection of samples through convenience sampling technique by the use of questionnaires which have to be answered by the fleet owners and transport contractors.
  • Secondary research: Use of brochures, internal training material and other sources like internet for in-depth product comparison to convince the end customer that none other than Tata motors buses have best in class features, user friendly design for school students and teachers, driver comfort, power and mileage and maintenance costs which translate into industry-best resale value. Moreover, they are manufactured to meet the latest safety and quality standards as prescribed by the Government of India for School Buses with effect from 1998.
JUSTIFICATION FOR CHOOSING A PARTICULAR RESEARCH PROPOSAL:
  • To collect in depth information at the smallest of levels to gain a detailed knowledge of real life usage and long-term ownership review of the products and services of Tata Motors by the end customer in direct interaction; and feedback collected will be sent directly to the company which, if needed, will necessitate required action and steps in helping them to improve their products and services, thereby increasing the volume and hence, the market share in school bus segment.
  • Feedback and suggestions will also be given from my understandings of this thesis project for the same.

Last edited by sidindica : 6th April 2010 at 20:55.
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Old 6th April 2010, 21:03   #2
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(I will only write some selected content, not the entire project.)

Part 1: Introduction


Light Commercial Vehicles (LCVs) are usually referred to goods and carriage vehicles with a light capacity that varies from one region to another. In Europe the popular definition for a light commercial vehicle is one good vehicle with a maximum permissible capacity of 3.5 tones of mass. The importance of a light commercial vehicle is obvious especially in a newly industrialized economy with large regions to cater where such vehicles play a niche role in transporting goods from one place to another throughout the country.

In the Indian automobile context, light commercial vehicles have assumed a great degree of significance with the national economy poised for a greater leap forward. No wonder, all the leading automobile manufacturers are having their operations in the field of LCVs.

Tata Motors for one, has made its position unique in the commercial segment of Indian automobile by having a presence in all spheres, light commercial vehicles, heavy commercial vehicles and the like. However, the other leading automobile players like the Ashok Leyland and Swaraj Mazda too, are not lagging behind and they have their own aggressive expansion plans on show.
The Indian commercial vehicles (CV) industry has a long history, possibly dating back to the passenger vehicles industry. Telco, the first entrant in the segment, continues to be the largest till date, with a market reach unrivalled by its competitors. Telco pioneered production of commercial vehicles in the country with technical collaboration with Daimler-Benz of Germany in 1954.

The industry has made a significant contribution to the country’s industrialization and progress. In fact, India achieved self-sufficiency in commercial vehicles, except in the high-tonnage classes, where the demand has nonetheless been limited. The entry of Ashok Leyland, with technology from British Leyland, marked the beginning of competition in the truck and bus segment. The substantial rise in petrol prices in 1976
lead to conversion of almost all CV to diesel engines. The continuous increase in petrol prices since then and the subsidy provided to diesel increased flavor for diesel commercial vehicles continued till date.

The next major change in the industry came about in late eighties, when the superior Japanese Light Commercial Vehicles (LCV) made their debut in India. The Japanese invasion, however, fizzled out very soon as the new entrants ran into losses as a result of the rising yen. This brought to the fore the critical role of indigenisation as a means of ensuring steady growth and survival during difficult times. However, Telco was the biggest beneficiary of the fiasco. Telco soon upgraded its products to match the Japanese in style and finish, nonetheless with much the same aggregates, with the result that it emerged as the main contender by cornering more than 50% of the LCV market.

The marginal players in the commercial vehicle industry like Hindustan Motors, Premier Automobiles Ltd and Standard Motors Pvt Ltd withdrew from LCV market in late eighties due to stiff competition in passenger car market and their inability to compete in the CV market. In fiscal 2007, high demand for LCVs in both domestic and international markets raised the total production of commercial vehicles despite a fall in medium and
heavy segments during the same time frame.

Indian LCV manufacturers are mainly targeting South Asia, the Middle East and Africa to sell their finished products as these regions are demographically similar to India. Thus, LCVs, which are made keeping Indian roads in mind, will face lesser difficulties in acceptance by people and perform in these regions. Moreover, LCVs could be utilized in the regions for other mode of goods transportation as well due to their body size. Besides,
these regions are undergoing massive infrastructure development, creating large potential opportunities for commercial vehicles, especially the lighter ones as lower import rates are charged on LCVs, Sensing the growing demand of LCVs in export markets, Indian manufacturers have raised the share of LCVs to 47% in total production of commercial goods carrier (as of 2007-08).

Other Key Highlights:

- Passenger car production in India is projected to cross three million units in 2014-15.
- Sales of passenger cars during 2008-09 to 2015-16 are expected to grow at a CAGR of around 10%.
- Export of passenger cars is anticipated to rise more than the domestic sales during 2008-09 to 2015-16.
- Motorcycle sales will perform positively in future, exceeding 10 Million units by 2012-13.
- Value of auto component exports is likely to attain a double digit figure in 2012-13.
- Turnover of the Indian auto component industry is forecasted to surpass US$ 50 Billion in 2014-15.
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Old 6th April 2010, 21:08   #3
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Part 2: Literature review

Road transport is vital to economic development, trade and social integration, which rely on the conveyance of both people and goods. Reduction in transport costs promote specialization, extend markets and thereby enable exploitation of the economies of scale. Global competition has made the existence of efficient transport and logistic systems in delivery chain an absolute imperative. Easy accessibility, flexibility of operations, door to- door service and reliability have earned road transport an increasingly higher share of both passenger and freight traffic vis--vis other transport modes. Road transport has emerged as the dominant segment in India's transportation sector with a share of 4.5 per
cent in India's GDP in 2005-06.

Over the last six years (2000-01 to 2005-06), the annual average growth in road transport sector GDP at 9.5 per cent was much higher than the overall GDP growth of 6.5 per cent. Robust growth in road transport has been attained despite significant barriers to inter-State freight and passenger movement compared to inland waterways, railways and air which do not face rigorous enroute checks/barriers.
Transport demand in India has been growing rapidly. In recent years this demand has shifted among transport modes, mainly to the advantage of road transport, which carries about 87 percent and 61 per cent of passenger and freight transport demand arising for land based modes of transport (i.e. roadways and railways taken together) respectively.

During 1992-93 to 2004-05 demand for road freight transport in India is estimated to have grown at an annual average rate of 6.7 percent, while GDP grew at an average of 6.2 percent. Road freight transport demand is expected to grow by around 10% per annum in the backdrop of a targeted annual GDP growth of 9% during the Eleventh Five Year Plan.
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Old 6th April 2010, 21:11   #4
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MOTORIZATION LEVELS IN INDIA

Motor vehicle population has recorded significant growth over the years. India had 72.7 million registered motor vehicles at the end of fiscal year 2003-04. The growth of vehicular traffic on roads has been far greater than the growth of the highways; as a result the main arteries face capacity saturation. Between 1951 and 2004 the vehicle population grew at a compound annual growth rate (CAGR) of close to 11 per cent. Personalized mode (constituting mainly two wheelers and cars) account for more than four-fifth of the motor vehicles in the country compared to their share of little over three-fifth in 1951.

Further break up of motor vehicle population reflects preponderance of two-wheelers with a share of more than 71 per cent in total vehicle population, followed by cars with 13 per cent and other vehicles (a heterogeneous category which includes 3 wheelers, trailers, tractors etc.) with 9.4 per cent. In contrast to personalized mode, the share of buses in total registered vehicles has declined from 11.1% in 1951 to 1.1 as in 2004.
Also, the share of goods vehicle which was about 27% in 1951 has declined to a little over 5% by end March 2004. The share of goods vehicle in vehicle population is modest in comparison to the size of the economy. The share of buses and trucks in the vehicle population at about 1 per cent and 5 per cent respectively is much lower compared to most of the other countries in Asia.

International experience suggests that with the rising income levels, car ownership rates are likely to grow much faster than GDP and start to displace 2-wheelers. The current vehicle density in developing countries is low; for example, the vehicle density in India is only 12 vehicles per 1000 persons, compared to 580 in Germany, 808 in the USA. Also the number of cars per 1000 people in Asia remains modest- at about 10 per 1000 people in PRC, 8 for India. However, the number of two-wheelers per 1000 population is much higher at around 45 in case of India. The low vehicle density is marked by its skewed distribution in favour of cities. In 2004-05, 22 cities accounted for 60 per cent of sales of passenger vehicles.

In the coming years the profile of motorization is expected to witness a number of changes in terms of segment shifts, driven by rising incomes, desire for safety and comfort and government regulations. Over the short term, the sensitivity of demand for vehicles to changes in GDP and in vehicle price is somewhat elastic as their purchase can often be delayed, but in the long term it has low elasticity, indicating that personal mobility is considered by many as essential to everyday living and that it has few substitutes. Thus, other measures are required as well to restrain growth in personal motor vehicle and associated negative externalities.

Last edited by sidindica : 6th April 2010 at 21:12.
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Old 6th April 2010, 21:36   #5
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PUBLIC PASSENGER TRANSPORT BY ROAD

The changing composition of vehicle population over time reflects an increasing importance of personalized mode (cars & two-wheelers) of transport vis-a-vis public bus road transport mode. The marginalisation of the bus mode of transport is reflected in the fact that while the vehicle population grew at a compound annual growth rate (CAGR) of close to 10% number of buses grew by less than 7 per cent during 1991 to 2004 with a meager growth of less than 1 per cent in the number of buses owned by the public sector entities. The slower growth in the number of buses has resulted in sharp erosion in the share of buses in total vehicle population from more than 11% in 1951 to a mere 1.1% in 2004. This marginalization of Public Bus Transport (PBT) also reflects major sociological and economic changes related to increase in disposable income of households, changes in lifestyles, urbanization etc.

This has been accompanied by increasing motorization through rising number of cars and 2-wheelers resulting in congestion and therefore, slowing down the movement of public bus transport. With rising income and greater need for mobility, the personalized mode of transport is likely to grow in importance in the coming years. The proliferation in the personalized mode of transport imposes negative externalities on the society in the form of traffic congestion, carbon emissions/pollution, inefficient use of fuel, scarce road space, etc. Public transport system comprises of a wide array of passenger services which includes mass transit/metros, contract carriages (taxis, autos), high capacity buses and stage carriages (buses, mini buses etc). Each of these modes has certain distinct features. Mass transit/metros has the capacity to move large volume of passenger quickly but entails huge fixed costs and are suitable for big metros; high capacity buses also enjoy the advantage of carrying large volume of passenger traffic at a lower cost vis-a-vis metro but requires dedicated lanes for faster movement which are hard to create where road space is scarce.

Taxis and autos provide comfort and flexibility of personalized mode but do little to lessen the burden of congestion. Amongst the differing modes of public road transport bus is the optimum from the point of view of cost effectiveness and benefits to the society as it entails less fuel cost and pollution per passenger km compared to other road based competing modes of public transport.
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Old 6th April 2010, 21:43   #6
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Objectives of Public Bus Transport (PBT) System

It is essential to promote public bus transport to:
a. Redress the imbalance between public transport and private personalized mode involving free use of the road network with attendant external costs, etc in favour of PBT mode;
b. Facilitate access to essential socio-economic services (shopping, education, health, etc.) and provide affordable mobility to those who do not have access to a personalized mode;
c. Reduce negative externalities (congestion, pollution etc) as PBT
consumes/emits less fuel/pollution per passenger Km vis-a-vis personalized modes;
d. Reduce overall cost of transport for the society through higher modal share of PBT in passenger movement by road.

PBT has to strike the right balance between:

(a) user satisfaction
(b) commercial interests
(c) social demands.

A growing population means higher transport demand.
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Old 6th April 2010, 21:47   #7
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Financing of Public Transport Operations

By clearly separating the social objectives and appropriately compensating for social obligations, PBT can be operated on commercial lines. This would also encourage private investment. By applying economic principles for allocating scarce road space, it would also be feasible to have dedicated lanes for buses in select towns and metros resulting in improved and timely PBT services at much lower cost.

Financing of PBT operations can be achieved through a combination of
  • (a) fare box collection which is a function of fare structure, passenger carried and efficiency of fare collection,
  • (b) Other commercial revenue (advertising, property rentals etc.). Substantial non fare revenue can be collected through innovative use of space on buses/bus stops for advertising purposes and development of real estate for commercial purposes and;
  • (c) compensation for discharge of social /regional service obligations.
The revenue foregone on account of confessional fares/passes is estimated at around Rs.1482 crore for the reporting SRTUs in 2004-05.
Public transport systems in most of the countries need financial support to fill the gap between income and cost of operations. Therefore it is imperative to explore alternate funding measures to over come this deficit.

The alternatives to user charges adopted in some developed countries include following options:

Polluter Pays:
vehicles which entail pollution compensate for the cost imposed on the community. The vehicles that cause congestion pay a fee to use the roads. The compensation paid may then be used to fund alternative, less polluting forms of transport.
-e.g. use of the proceeds of the Mineral Oil Tax (Mineraloelsteuer in case of Germany) to fund public transport; similarly environmental taxes and parking charges may be used to fund public transport.

Beneficiary Pays:
those who benefit from a service meet its costs. Employers in particular gain from the provision of public transport services which give them access to wider labour-markets. The French Transport Tax (Versement Transport) requires employers with more than nine staff to contribute towards the cost of public transport investment and operation. Besides construction of new public transport infrastructure could be partly funded from the rents and sale values of property/premises of public
transport operators/stations.

Public exchequer:
through national and local taxation, this is borne by the taxpayers whether or not they are public transport users.
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Old 6th April 2010, 21:50   #8
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Financing of State Road Transport

For most of the State Road Transport Undertakings (SRTUs), financing of the operation cannot be fully covered by the revenues from fares/user charges. Also SRTUs are confronted with a situation where staff costs and fuel costs account for more than three fifth of their expenditure with staff costs more or less in the nature of fixed costs due to the limited ability to adjust labour force in response to the changing market conditions.

The fact that government financial support is required to fill the gap between revenue and costs of operation does not mean that SRTUs are unviable but also reflects that fares are not adjusted in line with rising fuel and other costs. Besides bus fares are also set with socio economic objectives in mind. Presently acquisition cost of a bus is compounded by the existence of multiple commodity taxation, viz, central excise and State VAT/Sales Tax. In view of the advantages of public bus transport system it would be desirable to lessen the burden of commodity taxation. In addition, public buses (Contract/Stage carriage) are subject to Motor Vehicle Tax (MVT) and Passenger tax etc. which also need to be rationalized.

There is heavy and varying incidence of MVT on public buses, in general, and SRTUs, in particular. SRTUs in Maharastra and Gujarat contribute 17% of their respective turnover towards MVT; in Rajasthan MVT is assessed at 2.1% of the current cost of bus chassis on a monthly basis; in Uttar Pradesh the average incidence tax on UPSRTC bus was Rs. 2.35 lakh which is almost four times what a private bus operator paid (Rs. 0.85 lakh) in 2004-05; in Punjab, for 2005-06, the average tax liability per SRTU Bus was 3.93 lakh compared to Rs.2.80 lakh paid by a private bus operator.

The main underlying principles of costing should emphasise:
  • (a) Where costs are incurred for policy reasons, such as higher service levels or lower fares than would be justified on exclusively commercial grounds, those responsible for them must assume responsibility for their payment and;
  • (b) Subsidies implicit/explicit should be considered and calculated as payments for services rendered.
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Old 6th April 2010, 22:11   #9
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Policy Framework to promote Public Bus Transport (PBT)

A clear and stable policy framework that defines the roles and responsibilities of all stakeholders in PBT system would facilitate long term planning, sound day- to day operation and a firm basis for launching public private partnership in the PBT system. To this end Government needs to explore untapped potential of Public Private Partnership (PPP) in PBT. PPP is a contractual agreement between a public agency and a private sector entity.

Through this agreement the skills and assets of each sector are shared in delivering a service or facility for the use of general public. In addition to the sharing of resources, each party shares the risks and rewards potential in the delivery of service/facility. It is imperative to put in place a policy framework that supports and sustains an efficient PBT system so as to contain runaway growth in personalized mode of transport.

In particular, policy framework should emphasize following aspects:
  • i. Provide fiscal incentives to encourage Public Bus Transport.
  • ii. Explore use of service contracts, which define clearly the responsibilities of each party/stakeholders. Allow for automatic adjustment in fare increase and specify that operators may be compensated for increase in operational costs on account of fuel and manpower costs. This will help to avoid less frequent steep fare increase or reductions in quality of service.
  • iii. Service contracts should include financial incentives, in the form of a bonus/penalty system, in order to provide an inducement to increase the rider ship and the quality of service provided. Tenders should define not only the service required, but also quality.
  • iv. Explore new forms of supply/ procurement for the PBT system, for example, procurement of rolling stock (through leasing) and outsourcing of maintenance operations.
  • v. Enhance productivity, comfort and security in PBT system to attract commuters.
  • vi. Adopt use of information technology (IT) to enhance efficiency and productivity. IT applications offer new opportunities for PBT which include: (a) e-ticketing
    (b) communication with customers in general
    (c) (real time) time table information
    (d) computer aided maintenance and control systems and;
    (e) GPS to track and monitor the operations of bus fleet.
  • vii. In order to promote PBT system, there is a need to reduce the incidence of indirect taxes but also harmonise motor vehicle tax (MVT) regime across States which is diverse due to differing vehicle classification, basis (per seat/type of route/distance etc) and rates. MVT being a State subject can be suitably addressed through an Empowered Committee of State Ministers of Transport.
  • viii. The declining role of public transport vis-a-vis personalized mode of transport is also in part a reflection of underinvestment in public transport. Underinvestment over a sustained period has resulted in low and unsatisfactory level of public transport services leading to a greater dependence on personalized mode. To promote much needed investment in the road public transport system there is urgent need to strengthen it with following:
    (a) ensure availability of adequate funds towards fleet modernization of SRTUs so as to create world class PBT system;
    (b) upgrade bus infrastructure - bus terminals, stops;
    (c) identify routes for plying of stage carriages based on comprehensive route surveys;
    (d) promote road safety and;
    (e) coordination with other modes.
  • Provide assistance under centrally sponsored scheme "Strengthening Public Transport System in the Country" to all States/UTs subject to following conditions:
    (a) preparation of detailed project report to access the facility, (b) adoption of competitive bidding for issue of permits for the passenger services,
    (c) identification and separation of profitable and non profitable routes;
    (d) issue of permits for the routes would be through competitive tendering: profitable routes would be awarded to highest bidder while non profitable would go to the lowest bidder in terms of subsidy/gap funding.
  • x. Offer product differentiation in bus passenger services (ordinary, semi-luxury, airconditioned etc) to serve different class of passengers. This will help in weaning away commuters from personalized mode and also help in raising fare collections.
  • xi. Review of Road Transportation Act, 1950. This is urgently required in view of the changed economic environment with greater role for market forces and need to build competitive cost structures in non tradable services like passenger road transport.
  • xii. SRTUs need to explore alternate institutional models which offer greater autonomy and flexibility from the point of view of commercial operations. This could be achieved if Road Transport Undertakings are incorporated under the Companies Act rather than Road Transportation Act, 1950.
  • xiii. Treat public transport at par with public utility services.
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Old 6th April 2010, 22:14   #10
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Promoting passenger road connectivity to semi-urban and rural areas

Promote participation of private operators on non viable semi urban/rural routes through favorable policy regime.
This could be achieved through following options :

(a) auctioning of combination of routes (which are a mix of profitable and non viable routes) to private operator(s) so as to enable them to compensate their losses on account of operation of non viable routes;
(b) offering non viable routes to bidder asking for lowest subsidy/financial support;
(c) subjecting non viable routes to lower rates of taxation or permit fees and;
(d) allowing alternate competing modes of passenger road transport.
This could be achieved by granting mini bus permits on routes serving semi-urban and rural areas which are not adequately served by regular public transport.
This policy has been successfully tried in Tamilnadu.
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Old 6th April 2010, 22:21   #11
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ROAD TRANSPORT REGULATOR

To ensure level playing field for road passenger transport services, operating in public and private sector, there is a need for Independent Regulator in Road Transport Sector.
Such independent Regulator should be provided with statutory authority, fixed service tenure with provision for removal on grounds of inappropriate act or incompetence. Besides, financial autonomy need to be provided through levy of fee on service providers.

The Independent Transport Regulator at State level should be entrusted with the following task:


i. fix price band for different kinds of services in an objective and transparent manner;
ii. Ensure service coverage across regions (including rural, remote and hilly areas) and provide mechanism for compensation for discharge of universal service obligations (provision of service on non-remunerative routes and remote rural sector);
iii. benchmark quality of road passenger service;
iv. impartially address various operational issues like access to terminals and other common infrastructure facilities to all operators and;
v. Promote competition to curb anti-competitive practices.

The Independent Transport Regulator could mandate ISO 9001-2000 Certification for the Transport Service Providers, consistent with reasonable tariff. The easy access of general public and NGOs to such a Regulator could ensure better compliance and better service to the users. The burgeoning urban population of India is engaging in a variety of economic activities in rapidly expanding cities, which are, therefore, encountering fast
escalations in urban travel demand.
A variety of transport modes, such as, walking, cycling, two-wheelers, para-transit, public transport, cars, etc. are used to meet these travel needs. Travel demand is determined by a number of factors, the primary one being the size of the population. Other determinants include: average number of journeys performed by a resident each day (per capita trips) and the average length of each such journey (trip length). Travel demand has, thus, grown faster than the population because it is a function of both the rising number of trips undertaken by the incremental population as well as increased trip lengths necessitated by expanded city size.
Further, it has been found that residents, on an average, tend to perform more trips per day as per capita income levels go up. A study carried out for the Ministry of Urban Development, covering 21 cities in the country, suggests that more than 75 per cent of the trips in a city are on account of either employment or education. Per capita trip rates range from 0.72 to 1.79 per day (RITES 1998).
Over 30 per cent of the total trips are undertaken by walking and the share tends to reduce as city size grows and the share of trips by public transport goes up significantly as city size goes up, as shown in the fact graph below:

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Old 23rd May 2012, 16:14   #12
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Default Re: All About LCVs and school buses-my one time pet project

Hello,

Right out of the blue! But this post has been really helpful to me as I have been given a similar project at Bangalore. Sir, it would be indeed of great help if I could get some advice on how to go about the same. I am unable to send you an e-mail or even a Personal Message.

Sorry for any inconvenience.

Regards
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