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New deal for urban transport

One of India’s failings is the absence of reliable, modern and efficient urban public transportation systems. Given the pace of urbanisation, the government that will assume office soon at the Centre will have to give top priority to improving urban transport systems, and to create new infrastructure in a large number of urban centres. The trajectory of urban transport policy, which is skewed in favour of private (two-wheelers and cars) and intermediate (taxis and autorickshaws) personal transport modes — as opposed to public and non-motorised modes of transport, such as bus systems and bicycles — needs quick correction. In addition, there is the near-total absence of state transport other than in six metropolitan cities. Against this backdrop, the National Urban Transport Policy (NUTP), with its emphasis on integrating transport modes in the million-plus cities, was a welcome progression, albeit constrained by the States’ inability to raise finances. Raising the estimated Rs.4,35,380 crore to meet transport needs in 87 cities calls for innovations such as cross-subsidised fare structures and regulated public-private partnerships.

Economic precepts specific to public services such as urban transport — high capital costs, long gestation periods, and near-exclusivity in operations — merit state supervision as unfettered markets could be both inefficient and inequitable. However, to raise resources quickly, the States have to provide a regulatory framework that can accommodate various funding models. The NUTP’s commitment, that the Centre will financially assist the States to improve public transportation, has failed to produce a dramatic transformation as the latter have, in general, not changed their archaic regulations. They must be persuaded to make the paradigm shift in policy and financing. The first requisite is to create empowered regulatory bodies to ensure a level playing field for all operators and strike a blow for the commuter. Although three years have passed since the transport policy was adopted, most States do not have functional regulators in place. Without such a mechanism, there is little scope for modernising and integrating rail and bus systems, and more importantly, addressing equity concerns. The time has never been better to move forward on this agenda, given the need for affordable mass transit and its effect to stimulate economic growth. The exponential growth of the telecommunication sector after the advent of mobile telephony, marked by equity, affordable tariff, and regulatory oversight, is a pointer to the benefits of a new deal for public transport.

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