Urban transportation in India is in a state of significant transition. Relegated to the bottom half of the list of India's infrastructure requirements over the last few decades, it has now risen to prominence, driven by a massive need to provide sustainable solutions to India's burgeoning urban population. As per the Census of India 2011, 377 million persons live in India's cities, constituting 31% of the total population. This is expected to increase to 40% by 2030.
Over the last decade (2001-11) urban population grew at a CAGR of 2.8% while total population grew at a CAGR of 1.6%, a clear indication that Indian cities continue to attract emigrant population.
The KPMG report in collaboration with FICCI ‘Getting Urban Transport on Track’, comprises of an analytical account of India's urban mass transit needs alongside the large investment opportunity presented by urban transportation over the next decade, with the intention of helping investors and entrepreneurs understand the current scenario.
The implementation and operation of urban transport projects is also governed by ambiguous legislation in India. As of today, there are only three acts specific to mass rapid transport: The Tramways Act, The Delhi Metro Railway (O&M) Act, 2002 and the Metro Railways (Construction of Works) Act, 1978. In addition, there are several other acts that deal with other transport matters such as The Railways Act, 1989, The Motor Vehicles Act, 1988, The Road Transport Act, 1956, etc. While the number of rules and laws enacted might seem adequate, they are grossly insufficient. There exists a dire need for a comprehensive legislation covering all aspects of urban transportation.
Expected Investment Impetus
Recognizing the increasing need for rapid expansion in existing public transportation infrastructure across cities in India, the 12th Plan envisions substantial investment across developing metros and bus services in India's large cities and small towns / districts respectively. The plan also touches on the need for separate agencies in States and cities to manage the multi-component urban transport sector in an integrated and coordinated fashion.
Of the total planned investment of INR 3,883 billion envisaged in the 12th Plan, INR 2,026 billion is estimated to be the projected investment in public transport, bus infrastructure and other associated features. This includes an estimated investment of INR 1,505 billion to be invested in the urban rail sector alone.
Financing of these outlays is expected to be done through coordinated investments by the state and central governments, private concessionaires, international and domestic debt and through property development of allotted land. Interestingly, the Planning Commission expects that more than a third of the overall expenditure requirement in the urban transportation sector will be funded by the private sector. This could indicate a greater inclination towards executing projects through the PPP route.
Key Implementation Issues for Mass Transport Projects are, Financing Urban Transportation Projects, Land Acquisition & Environmental and Regulatory Impediments.
While government funding for urban transportation projects has seen an unprecedented growth over the last few years and continued impetus on funding of planned projects is expected, there exists a large gap between requirement and availability.
Land acquisition for infrastructure projects has always been a key challenge in India leading to delays in project execution. Social implications such as population displacement, location of places of worship, public sentiments over heritage properties and other social reasons provide constant public resistance and impede progress.
A sustainable transport system should co-exist with the need to safeguard the environment.
However, sometimes cutting trees becomes inevitable along the alignment of a planned route.
Parameters for a Successful Urban Transport System
An effective public transport system has to be Accessible to all travelling public. This indicates that the transport system should be integrated with a wide network so as to cover even the remotest area within a short distance from the public transport system.
In a developing country, Affordability is a key criterion for choosing a particular mode of transport. In a scenario where a parallel system works with two different modes of public transport, a person with low income may prefer the cheaper mode even at the cost of comfort or speed. In Kolkata, there are bus services running in parallel to the North-South underground metro system covering almost the entire route.
Where a commuter has a choice of service and willingness to pay, Travel efficiency will play an important role in selecting the public transport system. The travel efficiency can be represented in: Speed of the Journey, Travel Time, Vehicle fuel consumption & Reliability.
Safety is one of the prime considerations resulting in shift in the modal choice of commuters. Safety along with security in terms of crime rates and the risk of an injury and death is a basic requirement for commuters. A public transport with a high ridership or a train system with separate compartments for women passengers will have a high patronage. Passengers also look for a comfortable travel option, especially those shifting from the motorized transport system. An effective customer service with service commitment, courteous staff, passenger facilities also add to the Travel experience of the commuters.
The KPMG report in collaboration with FICCI stated, while the need of the hour is a fully integrated solution for transportation at the city level, a supporting eco-system to successful implementation must be also developed to complement the large opportunities. Coordination between state, central and local bodies, strong legislation, financing and well-planned transportation solutions will only aid continued growth and making living a lot easier for India's urban population.
