FUNDING PUBLIC TRANSPORT SYSTEMS IN METROPOLITAN CITIES

This paper considers various aspects of the financing of public transport in large Indian cities, which face a vicious circle of rising costs and fares and declining services and patronage. The author discusses: (1) basic problems of funding; (2) funding practices in India and other countries; (3) sources of finance; and (4) financial strategies. He presents the following conclusions and recommendations: (1) India does not yet consider its transport system an essential part of its economy; (2) the basic problem of Indian public transport is lack of availability of the right funds at the right time; (3) traffic management and control measures should supplement capital-intensive transport projects; (4) a single coordinating authority should plan, administer and finance public transport; (5) there is not yet any legal basis for raining adequate funds for public transport; (6) urban public transport systems, both bus and rail, should be placed under integrated authorities, separate from the intercity rail system; (7) a flexible fare policy should be developed, to cover operating costs at least; (8) Indian public transport should be financed jointly by national, state and local governments and from other sources; (9) the Delhi development authority should support public transport by cross-subsidising from land resources; (10) employers should be charged some amount per employee to assist public transport; (11) people in higher income groups should contribute through a surcharge on sales tax; and (12) central government could provide loans interest-free or at low interest rates. (TRRL)