New fund likely for unviable bus routes

As part of the new transport policy, the Planning Commission is considering a model under which the government will create a Universal Service Obligation(USO) Fund, akin to the telecom industry, to subsidise non-profitable bus routes across the country.

Under the proposal, companies can bid for non-profitable routes, with the bids based on the subsidy they would require from the USO fund. It is proposed that the winning bid would be the one asking for the minimum support.

A USO policy in the road transport sector has recommended in order to ensure availability and accessibility of minimum set of passenger transportation services to all users, irrespective of where or which part of the country they live in and at affordable prices.

The USO Fund's finances would be drawn from revenue earnd from private tranporters on profitable routes.

Further, a regulator of USO Fund for bus transporation would have the powers to formulate bidding procedures, including terms and conditions to implement the USO.

Other powers of the regulator include, drawing agreements with universal service providers or operators. Formulating competitive biddings to grant permits and assigning routes through the public-private partnership model.

According to a road transport and highways ministry official, the time is just right to review the transport policy, which was framed in 1980, given the fact that the sector has undergone a sea-change in the past three decades.