STRATEGY FOR DEREGULATED SECTORAL OPERATION OF DELHI ‘S
STAGE CARRIAGE PUBLIC TRANSPORT SYSTEM - BACKGROUND NOTE
1. BACKGROUND
The public transport system of Delhi is primarily bus based. At present,
the bus system is being operated by a public operator (DTC with about
2200 buses) and individual private operators operating approx. 2500
buses. The Supreme Court of India’s directive makes it binding for
Transport Department, GNCTD to ensure that the entire city bus fleet
including Stage Carriage bus fleet should be on CNG fuel only. The Court
has also set a deadline for phasing out all existing diesel buses by
November 2002.
The existing bus system with many individual private operators has not
been able to provide adequate, efficient, reliable and punctual bus service
to the commuters of Delhi for many reasons. The sole objective of profit
making of individual private operators led to hordes of problems like over
speeding, overcharging, non operation of uneconomic routes / trips, adhoc
changes in routes, employment of unqualified staff, non-adherence to
statutory employment regulation, unsafe operation, etc.
Now, GNCTD plans to enlarge the scope of private sector in existing
public transport system to provide efficient and reliable public transport
system to the commuters of Delhi. For this GNCTD envisages to introduce
a scheme for augmenting the bus fleet with private sector participation
through corporate houses and big operators. The scheme envisages a big
leap forward towards augmentation of bus fleet by inducting modern CNG
buses and efficient management, which would ultimately bring in the
assured quality of service.
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2. DEFINITIONS
Following entities would be the main constituents of the proposed scheme.
Regulatory Authority- An Authority is proposed to be set up with
statutory powers for fixation of fares, planning and modification of routes
and schedules for all modes of public transport including intermediate
public transport in the NCT of Delhi. The Regulatory Authority would also
decide the user charges for usage of infrastructure owned by Bus
stop/terminal Authority and DTC etc. It would also decide the
compensation to the operators to be paid by GNCTD as compensation for
installing GIS & GPS, common ticketing equipment, concession travel etc.
at a later date. All funds for urban transport infrastructure in the NCT of
Delhi will be routed through this authority.
Terminal Development / Management Authority: An Authority is
proposed to be set up with statutory powers to develop, manage and
maintain the bus transport infrastructure such as bus stops, bus bays,
terminals, depots (parking and maintenance) etc.
Operator: Private Companies registered under the Companies Act,
Cooperative Societies formed under the relevant Cooperative Laws to
perform/ run bus services in NCT of Delhi and DTC. This also includes
management and financing companies who would provide services on
specific contractual agreement for operating transport services.
3. OBJECTIVES OF DEREGULATION OF STAGE CARRIAGE BUS
OPERATION
1. To improve the existing bus system operations for providing adequate,
efficient, reliable and punctual bus service to commuters of Delhi.
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2. To create a congenial atmosphere paving the way for participation by
private sector by corporate houses/ large operators/ Cooperatives of
existing/new individual operators.
3. To define the role of individual private operators in the sectoral plan.
4. STRATEGY TO MEET THE OBJECTIVES OF DEREGULATION OF
STAGE CARRIAGE BUS OPERATION
To meet the objectives of the deregulation of stage carriage bus operation
GNCTD has chalked out a tentative scheme, brief details of which are
given below:
4.1
BROAD OUTLINE OF THE SCHEME
A broad conceptual scheme has been evolved which envisages bus
operation on 650 bus routes identified by GNCTD to be allotted to
operators as a bundle. Bundling of routes would be on the criteria of
geographic location, minimum no. of buses and financial viability of
routes. Regulatory Authority, proposed to be set up with statutory powers,
would undertake fare fixation and route/ timetable change whenever
required. Operators would be required to pay charges for using the
infrastructure. Wherever possible, Parking facility would be provided by
GNCTD on user charges. Terminal Authority is proposed to be set up to
maintain, develop existing /new bus related infrastructure
4.2
OPERATORS OF THE SCHEME
The operators in the proposed scheme could be private firms/companies,
cooperative societies (existing and / or new operators) and DTC. The
operator would be responsible for financing and managing the bus
operation on terms and conditions agreed upon with Transport
Department, GNCTD.
Existing Operators
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DTC and private operators are operating the existing bus system of Delhi.
The role of existing operators of bus system would be redefined in the
proposed deregulated sectoral operation of bus system.
Role of DTC:
DTC would be treated as one of the operator. DTC being the single
largest bus operator under GNCTD, allotment of routes to DTC
would be the prerogative of STA.
Role of Individual Private Operators:
The existing individual private bus operators have existed in the
system for a decade. Therefore they will continue
to play an
important role in this proposed scheme. As the new scheme
envisages operation of bus system by operators with minimum of
50 buses, it will be better
for individual operators to form a
cooperative in their own business interests. These legal groupings
formed by existing individual operators would be given preference
in allotment of routes, which will be allotted as bundles to them.
New Operators:
GNCTD plans to invite private companies/cooperative societies /
other entities to operate buses on routes allotted to them as
bundles and provide quality service to commuters of Delhi.
4.3
ELIGIBILITY CRITERIA
1. The bus operator could be a private firm / company / cooperative society (existing / or new operators), DTC etc.
engaged in city bus operation
2. The operator must have a minimum of 50 CNG buses
registered in Delhi (either in operation or applied for).
3. The operator must have adequate organisational set up and
physical & financial resources. Documentary evidence of the
same should be provided.
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4. The operator must have in-depth knowledge, experience
and proven track record in city bus operation in Delhi or
elsewhere, supported by documentary evidence.
5. PROPOSED ROUTES
GNCTD have identified about 650 routes that are being operated by Stage
Carriage bus operators to meet the travel demand in Delhi. GNCTD
decides to bundle these 650 bus routes for allotment to operators. Some
of these routes may need to be modified / curtailed with the
operationalisation of Phase I network of Delhi MRTS and commuter Rail
( IRBT) system in next 3-5 years. The Regulatory Authority would carry
out the modifications in the routes. Some additional routes would need to
be operated as feeder routes to the proposed rail based mass transit
systems.
6. BUNDLING OF ROUTES FOR ALLOTMENT TO OPERATORS:
For allotment of bundle of routes to private operators following strategy
would be adopted.
 For bundling of routes Delhi is proposed to be divided into 14 sectors
based on geographical features of the city. This division would form the
initial basis of bundling of the routes. (Details are given in Para 13)
 The routes falling in the proposed sectors/sub-sectors would be
bundled on the basis of the point of origin of a route.
 The route end, which falls, in residential area would be treated as the
point of origin. There will be no two points of origin for the same route.
 In cases where both the route ends fall in residential area, the point of
origin would be identified on the basis of route characteristics.
 As far as possible the routes with nearby origins would be put in one
operative bundle.
 With the advent of MRTS and IRBT systems some routes of some
bundles would need restructuring. The restructuring would be under
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taken by the Regulatory Authority in a limited manner so as not to affect
the overall characteristics of the bundle.
 Each bundle would contain multiple classifications of routes. The
criteria for bundling would be based on different parameters such as no.
of buses. revenue potential, geographic location etc. which would serve
as a guide to make bundles of routes.
7. REVENUE POTENTIAL OF A BUNDLE OF ROUTES
The indicative revenue potential of each route will be tentatively calculated
by M/s. RITES Ltd.
The Criteria: The criteria which would serve, as guide for bundling of
routes with respect to revenue potential of the bundle would be:


No. of buses: 50
Point of origin for bundling of routes: within five kilometers of a
terminal

Financial potential of bundle
8. ALLOTMENT OF BUNDLES TO OPERATORS
 A bundle would be the lowest unit of allotment to operators. Operators
would be encouraged to apply for more than one bundle. Lesser the
number of operators, it is easy to manage the bus operation.
 In normal circumstances, bundle would not be broken. Under
exceptional circumstances where the number of buses in a bundle is
too large and no one operator is available to operate the same, then the
bundle would be divided into two or more equal bundles. The operators
of such bundles would allow the other bundle operators to operate on
their route.
 Allotment of bundles to operators would be by competitive bidding.
 Initially the bundle would be assigned for a period of 5-8 years.
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9. FARE STRUCTURE
As decided by STA, Delhi, the existing fare structure would be considered
as fixed and would be applicable for near future. When the proposed
scheme becomes operative, the Regulatory Authority would suitably
regulate the tariff . The operation and maintenance cost is proposed to be
indexed with fuel price and suitable proposals for their revision will be
suggested accordingly.
10. INFRASTRUCTURE
Infrastructural backup in public bus system is a pre-requisite and serious
issue, which needs to be tackled with proper planning.
The required
infrastructure support would be in the form of bus stops, terminals and
depots for night halt/parking. The existing infrastructure owned by GNCTD
could be used (with necessary augmentation).
STA would levy User Charges from private operators for using the
existing infrastructure. The Regulatory Authority would decide and
regulate these charges when set up.
The following aspects shall be considered:

Considering DTC as one of the operators, the surplus parking space in
depots after the parking DTC buses could be offered to private
operators for overnight parking on user charges.

It would be compulsory for the operators to park their buses at night at
pre determined spots. The private operators may approach DTC for
use of their space on mutually negotiated terms.

To develop, manage and maintain the infrastructure (bus stops,
terminals and depots etc.) it is proposed to set up Bus stop/stand
development / management/operating authority. The issues of new
terminals/ bus stops/night halt parking areas etc. would also be looked
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after by this authority. The proposed authority will be permitted to
undertake commercial exploitation.
11. FUTURE COURSE OF ACTION
The scheme outlined above is a broad conceptual scheme. Positive and
implementable suggestions received from the prospective operators will be
considered before finalizing the scheme. Responses received from potential
operators against EOI would be evaluated based on the above-mentioned
criteria. The pre-qualified operators would be issued Request For Proposal
(RFP) document containing finalized scheme and bundle of routes and the
operators would be asked to submit their detailed financial and technical bids
for operation of buses on various bundles of routes. Based on the evaluation
of detailed bids, operators would be selected for stage carriage bus operation
in Delhi.
A Pre EOI meeting will take place in RITES office at 12th floor, Amba
Deep Building , K.G. Marg, New Delhi, on 28.10.02 at 4 PM.
12. GENERAL TERMS AND CONDITIONS
1. A operator can apply for one or more bundle lying in one or more
sectors.
2. The buses would be CNG only.
3. The operator will manage the bus operation in each allotted bundle
and the operator has to comply with the statutory provisions of relevant
rules/legislation/instructions issued from time to time.
4. The operator will follow the fare structure as decided. Charging of
higher fares from the passengers will attract penalty
5. No concessional travel would be allowed. At a later date, if GNCTD
decides to allow concessional passes in privately managed operational
sectors, they will be compensated for the same.
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6. The routes would undergo change when Phase - I of high capacity rail
based systems MRTS and Commuter Rail Corridors (IRBT) become
operational. The Regulatory Authority would decide the modifications.
7. Each operator shall adhere to the timetable provided by STA. STA/
Regulatory Authority, if required, would make changes to the same.
8. The operator would install smart card system, common ticketing, GIS
and GPS equipments etc. in future as when decided by GNCTD. The
operators would be compensated for the same by GNCTD as decided
by the Regulatory Authority.
13.
SECTORAL DIVISION OF DELHI FOR BUNDLING OF STAGE
CARRIAGE BUS ROUTES OF GNCTD
The proposal contemplates to divide Delhi into 14
operational
sectors(Fig1). The above sectoral plan is only an indicative plan. Actual
operational sectors would emerge after completion of exercise of bundling
of the routes. The bundles of routes would be combined into specific
sectors/sub sectors.
Central Sector:
Area within Ring Road and will include the following:
Moti Nagar, Kirti Nagar, Pusa Road, Ashok Vihar,
Patel Nagar, Chanakya Puri, Central Secretariat,
Connaught Place, Karol Bagh, Gulabi Bagh Sarojini
nagar.
Magazine
road
starting
from
Khybar
Pass,
Vandematram Marg, Upper Ridge Road up to
Dhaula Kuan could be the dividing line of central
sector.
West Sector:
Area between NH 10 (Rohtak Road) & NH 8
(Gurgaon Road) and covers the colonies of Paschim
Vihar, Najafgarh Road, Dwarka, Vikaspuri, Hari
Nagar, Tilak Nagar, Airport, Delhi Cantt., Janakpuri,
Rajouri Garden, Diplomatic Enclave, Najafgarh Road
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running through it. Shivaji Marg and Northern
Railway rail line would be the dividing lines for
making sub-sectors in the proposed West Sector.
South Sector:
Area between NH 8(Gurgaon Road) Yamuna Pushta
covering the colonies of R. K. Puram, Vasant Kunj,
Mehrauli,
Maharani Bagh, Sarita Vihar,
Badarpur
JNU, Govindpuri, Lajpat Nagar, Sainik Farms, Greater
Kailash, Defence Colony, Okhla, Tughklabad, South
Extension, Bhikaji Cama Place,
This sector has
Aurobind Marg running through it.
Josip Broz Tito Marg, Aurobindo Marg would be
the dividing lines of proposed South Sector
North Sector:
Area between NH 10 (Rohtak Road) and Yamuna
Pushta
Nagar,
and covers the colonies of Rohini, Rajiv
Azadpur,
Mangolpuri,
Narela,
Nangloi,
Pitampura, ISBT, Mori Gate, Jehangir Puri, Shalimar
Bagh, Saraswati Vihar, Nirankar Colony, Delhi
University, Sonia Vihar,.
This sector has the G.T.
Road going through it.
GT Road, Rohini road (Shaheed Mahavir Marg
joining Auchandi Marg) would be dividing lines of
proposed North Sector.
East Sector:
Area beyond Yamuna Pushta covering the colonies
of Nand Nagri, Shahdra
Krishna Nagar, Vaishali,
Vivek Vihar, Anand Vihar, Patparganj, Mayur Vihar,
KalyanPuri etc.
NH-24(Hapur Byepass), NH 24 (GT Road, Shahdra)
would be dividing lines of proposed East Sector.
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