Starting an inter city bus service

happybuddha · 1st August 2010, 19:22

Hola,

I am not too sure if I can post this here, but believe me I have no hope from other sources of the wired world.
It is surprising how I have googled and searched but have not found too much (well, to be honest.. ANY) of an information. Could someone here point me to what it takes and what is required if someone wants to start an intercity (same state and other states) Bus service ? (of course, I am sure it will take a bus

, I am also looking for finer details like the tax laws et cetra)

cheers,
HB

prmd_cochin · 1st August 2010, 21:07

Would be better if you state in which state you plan to start as the locals here can help you.

conjon · 1st August 2010, 22:58

Is it a Stage carriage or Contract carriage that you are planning to start?

aargee · 2nd August 2010, 08:34

Looks like Buddha is happily settled in Hyderabad, atleast from profile. If it were from God's own country, it has its own set of problems & I could've shared my 2 cents on it, especially on the problematic areas, not sure on Hyderabad though.

n.devdath · 2nd August 2010, 11:25

I believe you intend to start a Stage Carriage. The biggest hurdle that you will generally face is getting a good permit. Which means a permit which has a good start and end time so that you get enough passengers in the bus. At my hometown, the value of a good permit is more than the value of the bus itself.

Then you have stiff competition from people owing multiple permits and vehicles. They will reduce rates, club permits and try to wean your passengers away from you.

Thirdly, you will need to have some clout and contacts with the police, the RTO/DTO and the locals along the route or atleast at terminuses. Exact rates and stuff are easily obtained from any RTO agent.

condor · 2nd August 2010, 12:02

* Booking agents - & trustable ones at that who can get your business
* Tie up with fuel bunks
* Your crew, your servicing points.
* Satellite set up at the destination end.
* Making sure you get the desired welcome from the competition at both ends of the route.

happybuddha · 2nd August 2010, 14:36

thanks for all your replies so far.

Yes, although I am based in Hyderabad at the moment, I am obviously open to knowing the busiest of routes. For it will be sensible only to provide services on the busy routes initially, till I can break even and make some monies. I have been around the country, so I am vouching for a few routes, for ex: Delhi - Rajasthan, Pune - Hyderabad, Hyderabad - Inner Andhra.. etc.
I think for the beginning, I might just want to start something from Hyderabad to cities in Andhra (like Vijayawada or Guntur). Incidentally I live on the highway in Hyderabad (yeah, surprisingly, we have humped so much that the city has exploded and what used to be a national highway once, is an arterial road in the city, discounting the people who came in from outside) where these buses pick passengers and I am seeing a very lucrative business on there. Although I am not sure if I can engage some bus operator in talk (even including some social engineering) and get the finer details out.

Condor, very well put. I really have those covered, atleast in ideation phase.

>Is it a Stage carriage or Contract carriage that you are planning to start?
To be honest, I don't know the difference. I will try and find it out meanwhile. I think, it will have to be a stage carriage for cities in the same state, isnt it ?

Which Govt. Department shall I approach for accurate taxation and rules implying for these services. I heard from someone you need to pay about 2500 rs as tax per seat every six months ! Anybody tried this before ? Anyone you may know who has tried this before who can give me some correct reliable and accurate information on this ?

cheers,
HB

greatmana2000 · 8th August 2010, 00:18

First , you need to understand that a regular parcel service is important . The passenger traffic alone is not enough to run a bus service .
Atleast the KPN , Parveen , Kesineni etc thrive on the transportation of goods rather than the passengers . The only service that i know of which does not do regular parcel service is Bharthi .

Next , you will have to know each and every part of the bus , the mechanical , electrical , glass parts , sheet metal parts etc .. the cost of servicing etc .

you will have to atleast have 10 buses running on a min of 5 routes so that you have 1 up and 1 down bus service so that you maintain continuity

SirAlec · 8th August 2010, 23:34

Main question is you want to start a fleet or just a single one?

lsp · 9th August 2010, 06:49

HB
If I remember correctly someone on TBHP bought a minibus sometime back. Try searching for the thread in the Commercial vehicles section. I would assume it is gonna be used for a similar purpose. You can PM that member to share some knowledge, if it doesn't harm his commercial interest.

happybuddha · 21st August 2010, 11:32

Thanks for the info guys. Sorry for replying late.

Well, starting with a fleet, seems a little difficult for my budget. May be 2 in the beginning. I understand the parcel component of the business. Thats big unaccounted money, even from the driver and conductor's point of view.

Lalit, I really tried searching for that mini bus post but was not able to. Would it be possible for someone to point me there ?

I am going to go to the tourism dept. today and see what can be done. I hope for the best.

cheers,
HB

shekaran · 21st August 2010, 23:36

Dear Friend,
Starting a Omni Bus Service has 2 options - 1. Daily Charter Trip between 2 cities/points and 2. Tourist Charter Service

For Both Services, You Need a Min. of 2 Buses, either Non A/C or Airconditioned Coaches in 32/30/28 seating capacities or Sleeping Berths.
Ashok Leyland latest 12M chassis costs 13L, plus a decent new bus body - with all fittings would set you another 10-12L, plus an A/C would cost another 7-9L (L=Lakhs).
Tata Chassis may be 1-2L lower depending on the wheelbase.
Fully Bulit Tata Buses come for 45L, with 40 Pushback seats and A/C.

Reg Tax :
AP Tax is 3500/seat for 3 months - every quarter - jan-mar, apr-jun, jul-sept, oct-dec.
TN state tax is 3000/seat, KA state tax is 2250/seat, KL state tax is 1500/seat and PY state tax is 550/seat.

Miscellaneous:
Drivers get paid 400-600 for driving 300-400kms/day and usually a bus covers approx 600-800kms/day easily.
Attenders salary is in the region of 250-300/day, who do all miscellaneous jobs in the place of the conductor in a bus.
Cleaner - Assistant to Driver, usually gets paid the same as the attenders, but do all odd jobs from washing, cleaning the bus, to getting chai to drivers.

Luggage :
this is one aspect which is not revealed by any operator, since it manages all unaccounted costs encountered in the trade. even emergency expenses are met only by this revenue, in every bus company.

Suggestions :
Start a Tourist charter service with an A/c and a non a/c bus, initially. the rental for such service is approx. 4000-4500/day for the bus, excluding the cost of diesel. this is for 300kms/day running, and extra kms are charged at perkm rates.
35-40 seats pushback with good ICE and comfortable seats with air suspension, is what tour operators need, at present, and this sector has immense potential, bcoz i run this trade from 2006... so know it more than the back of my hand.

Finally, if i disclose any more specifics, i may become, encounter the wrath of all my colleagues, bus operators, owners, so, if you want any more specifics, plans, details, pls PM me, or call me. i can do my best with a sincere, frank advice... and can even plan - budget - execute - your bus project.

Reagrds, have a nice day.

silversteed · 22nd August 2010, 00:21

Quote:

Originally Posted by happybuddha

Thanks for the info guys. Sorry for replying late.

Well, starting with a fleet, seems a little difficult for my budget. May be 2 in the beginning. I understand the parcel component of the business. Thats big unaccounted money, even from the driver and conductor's point of view.

Lalit, I really tried searching for that mini bus post but was not able to. Would it be possible for someone to point me there ?

I am going to go to the tourism dept. today and see what can be done. I hope for the best.

cheers,
HB

Well, so we have another 'Big' ownership thread coming up... Here's the link that you were looking for: https://www.team-bhp.com/forum/comme...-pg-8-9-a.html Wish you good luck on your endeavour.

WDM007 · 23rd August 2010, 14:00

Best way is to have a tieup with some good travel operator. Buy a couple of buses & hire those buses to the operator.

Let him manage all the tasks & get the money for hiring the buses to him. This is more hassle-free. Also you will learn how to manage the logistics, permits etc. Then jump into this field.

sbala · 24th August 2010, 15:05

At least in TN, we don't have a rule that permits private operators to start Express Services.

But How KPN, ABT, ARC, Parveen are operating?

They are not inter city bus service. They are actually tour operators

. They basically take you on a tour from one place to another. This is how they will show the records to the government. And hell, who cares it? After all everyone in the transport ministry is looked upon nicely.

1st August 2010, 19:22	#1
happybuddha Newbie Join Date: Sep 2008 Location: Hyderabad Posts: 12 Thanked: 0 Times	Starting an inter city bus service Hola, I am not too sure if I can post this here, but believe me I have no hope from other sources of the wired world. It is surprising how I have googled and searched but have not found too much (well, to be honest.. ANY) of an information. Could someone here point me to what it takes and what is required if someone wants to start an intercity (same state and other states) Bus service ? (of course, I am sure it will take a bus , I am also looking for finer details like the tax laws et cetra) cheers, HB
	() Thanks

1st August 2010, 21:07	#2
prmd_cochin BHPian Join Date: Nov 2008 Location: Cochin Posts: 575 Thanked: 85 Times View My Garage	Would be better if you state in which state you plan to start as the locals here can help you.
	() Thanks

1st August 2010, 22:58	#3
conjon BHPian Join Date: Mar 2010 Location: TReg : Glasgow, PReg : KL-5 Posts: 105 Thanked: 13 Times	Is it a Stage carriage or Contract carriage that you are planning to start?
	() Thanks

2nd August 2010, 08:34	#4
aargee Senior - BHPian Join Date: Jan 2010 Location: TSTN Posts: 6,236 Thanked: 9,641 Times	Looks like Buddha is happily settled in Hyderabad, atleast from profile. If it were from God's own country, it has its own set of problems & I could've shared my 2 cents on it, especially on the problematic areas, not sure on Hyderabad though.
	() Thanks

2nd August 2010, 11:25	#5
n.devdath BANNED Join Date: Jun 2009 Location: Bangalore Posts: 4,287 Thanked: 2,811 Times	I believe you intend to start a Stage Carriage. The biggest hurdle that you will generally face is getting a good permit. Which means a permit which has a good start and end time so that you get enough passengers in the bus. At my hometown, the value of a good permit is more than the value of the bus itself. Then you have stiff competition from people owing multiple permits and vehicles. They will reduce rates, club permits and try to wean your passengers away from you. Thirdly, you will need to have some clout and contacts with the police, the RTO/DTO and the locals along the route or atleast at terminuses. Exact rates and stuff are easily obtained from any RTO agent.
	() Thanks

2nd August 2010, 12:02	#6
condor Distinguished - BHPian Join Date: Jun 2006 Location: Speed-brkr City Posts: 15,864 Thanked: 16,014 Times View My Garage	* Booking agents - & trustable ones at that who can get your business * Tie up with fuel bunks * Your crew, your servicing points. * Satellite set up at the destination end. * Making sure you get the desired welcome from the competition at both ends of the route.
	() Thanks

2nd August 2010, 14:36	#7
happybuddha Newbie Join Date: Sep 2008 Location: Hyderabad Posts: 12 Thanked: 0 Times	thanks for all your replies so far. Yes, although I am based in Hyderabad at the moment, I am obviously open to knowing the busiest of routes. For it will be sensible only to provide services on the busy routes initially, till I can break even and make some monies. I have been around the country, so I am vouching for a few routes, for ex: Delhi - Rajasthan, Pune - Hyderabad, Hyderabad - Inner Andhra.. etc. I think for the beginning, I might just want to start something from Hyderabad to cities in Andhra (like Vijayawada or Guntur). Incidentally I live on the highway in Hyderabad (yeah, surprisingly, we have humped so much that the city has exploded and what used to be a national highway once, is an arterial road in the city, discounting the people who came in from outside) where these buses pick passengers and I am seeing a very lucrative business on there. Although I am not sure if I can engage some bus operator in talk (even including some social engineering) and get the finer details out. Condor, very well put. I really have those covered, atleast in ideation phase. >Is it a Stage carriage or Contract carriage that you are planning to start? To be honest, I don't know the difference. I will try and find it out meanwhile. I think, it will have to be a stage carriage for cities in the same state, isnt it ? Which Govt. Department shall I approach for accurate taxation and rules implying for these services. I heard from someone you need to pay about 2500 rs as tax per seat every six months ! Anybody tried this before ? Anyone you may know who has tried this before who can give me some correct reliable and accurate information on this ? cheers, HB
	() Thanks

8th August 2010, 00:18	#8
greatmana2000 BANNED Join Date: Apr 2006 Location: chennai Posts: 703 Thanked: 58 Times	First , you need to understand that a regular parcel service is important . The passenger traffic alone is not enough to run a bus service . Atleast the KPN , Parveen , Kesineni etc thrive on the transportation of goods rather than the passengers . The only service that i know of which does not do regular parcel service is Bharthi . Next , you will have to know each and every part of the bus , the mechanical , electrical , glass parts , sheet metal parts etc .. the cost of servicing etc . you will have to atleast have 10 buses running on a min of 5 routes so that you have 1 up and 1 down bus service so that you maintain continuity
	() Thanks

8th August 2010, 23:34	#9
SirAlec Senior - BHPian Join Date: Sep 2006 Location: zxc Posts: 3,393 Thanked: 726 Times	Main question is you want to start a fleet or just a single one?
	() Thanks

9th August 2010, 06:49	#10
lsp BHPian Join Date: Aug 2009 Location: New Delhi Posts: 381 Thanked: 188 Times	HB If I remember correctly someone on TBHP bought a minibus sometime back. Try searching for the thread in the Commercial vehicles section. I would assume it is gonna be used for a similar purpose. You can PM that member to share some knowledge, if it doesn't harm his commercial interest.
	() Thanks

21st August 2010, 11:32	#11
happybuddha Newbie Join Date: Sep 2008 Location: Hyderabad Posts: 12 Thanked: 0 Times	Thanks for the info guys. Sorry for replying late. Well, starting with a fleet, seems a little difficult for my budget. May be 2 in the beginning. I understand the parcel component of the business. Thats big unaccounted money, even from the driver and conductor's point of view. Lalit, I really tried searching for that mini bus post but was not able to. Would it be possible for someone to point me there ? I am going to go to the tourism dept. today and see what can be done. I hope for the best. cheers, HB
	() Thanks

21st August 2010, 23:36	#12
shekaran BHPian Join Date: Aug 2007 Location: Puducherry Posts: 245 Thanked: 77 Times View My Garage	About Omni Bus Service Dear Friend, Starting a Omni Bus Service has 2 options - 1. Daily Charter Trip between 2 cities/points and 2. Tourist Charter Service For Both Services, You Need a Min. of 2 Buses, either Non A/C or Airconditioned Coaches in 32/30/28 seating capacities or Sleeping Berths. Ashok Leyland latest 12M chassis costs 13L, plus a decent new bus body - with all fittings would set you another 10-12L, plus an A/C would cost another 7-9L (L=Lakhs). Tata Chassis may be 1-2L lower depending on the wheelbase. Fully Bulit Tata Buses come for 45L, with 40 Pushback seats and A/C. Reg Tax : AP Tax is 3500/seat for 3 months - every quarter - jan-mar, apr-jun, jul-sept, oct-dec. TN state tax is 3000/seat, KA state tax is 2250/seat, KL state tax is 1500/seat and PY state tax is 550/seat. Miscellaneous: Drivers get paid 400-600 for driving 300-400kms/day and usually a bus covers approx 600-800kms/day easily. Attenders salary is in the region of 250-300/day, who do all miscellaneous jobs in the place of the conductor in a bus. Cleaner - Assistant to Driver, usually gets paid the same as the attenders, but do all odd jobs from washing, cleaning the bus, to getting chai to drivers. Luggage : this is one aspect which is not revealed by any operator, since it manages all unaccounted costs encountered in the trade. even emergency expenses are met only by this revenue, in every bus company. Suggestions : Start a Tourist charter service with an A/c and a non a/c bus, initially. the rental for such service is approx. 4000-4500/day for the bus, excluding the cost of diesel. this is for 300kms/day running, and extra kms are charged at perkm rates. 35-40 seats pushback with good ICE and comfortable seats with air suspension, is what tour operators need, at present, and this sector has immense potential, bcoz i run this trade from 2006... so know it more than the back of my hand. Finally, if i disclose any more specifics, i may become, encounter the wrath of all my colleagues, bus operators, owners, so, if you want any more specifics, plans, details, pls PM me, or call me. i can do my best with a sincere, frank advice... and can even plan - budget - execute - your bus project. Reagrds, have a nice day.
	(1) Thanks

23rd August 2010, 14:00	#14
WDM007 BHPian Join Date: Sep 2009 Location: Beaverton, USA Posts: 236 Thanked: 15 Times View My Garage	Best way is to have a tieup with some good travel operator. Buy a couple of buses & hire those buses to the operator. Let him manage all the tasks & get the money for hiring the buses to him. This is more hassle-free. Also you will learn how to manage the logistics, permits etc. Then jump into this field.
	() Thanks

24th August 2010, 15:05	#15
sbala BHPian Join Date: May 2007 Location: Bangalore Posts: 414 Thanked: 164 Times	At least in TN, we don't have a rule that permits private operators to start Express Services. But How KPN, ABT, ARC, Parveen are operating? They are not inter city bus service. They are actually tour operators . They basically take you on a tour from one place to another. This is how they will show the records to the government. And hell, who cares it? After all everyone in the transport ministry is looked upon nicely.
	() Thanks