Scheme to cover 118 cities
It is one of the most fast paced government projects executed to near perfection. The JNNURM order under the Ministry of Urban Development set an ambitious target to add close to 15,000 buses in 61 major cities across the country. This is part of the Government’s initiative to provide better public transportation and reduce traffic congestion and pollution. The project is funded by the Ministry of Urban Development.
“For the first time in the history of independent India, substantial assistance has been made available for purchase of 15,220 modern buses for city transport for 61 mission cities. These buses will be delivered by December 2009. As we consider public transport in cities a critical issue, we will try to organize assistance in procurement of such buses in 118 cities having a population of two lakhs and above”, said Mr. Jaipal Reddy, Minister for Urban Development, announcing the 100-day plan for his Ministry.
The process of placing orders by various State and city transport undertakings is being done on a war footing, and so far orders for 8,000 buses have already been placed with various vehicle manufacturers. The balance orders are also expected to be finalised in a month’s time. Out of the 15,000 buses, 20 per cent would be low-floor and semi low-floor AC and non-AC buses and the balance would be normal city buses.
Mr. Reddy has also taken it up with the Finance Ministry for completely doing away with the excise duty on public buses. Consequently, in the Budget for 2008-09, the excise duty was reduced from 16 to 12 per cent, and it was further reduced from 12 to 8 per cent in January 2009. The Ministry is making further efforts with MoF for reducing the excise duty from the eight to nil per cent.
The direct beneficiaries have been the vehicle manufacturers, with Tata Motors bagging a major share of close to 45 per cent of the total orders placed so far. Ashok Leyland has also bagged orders for 3,200 buses so far and further orders are expected.
Volvo has garnered a significant share of the order in the high-end low-floor AC city buses, and some orders have been bagged by Eicher Motors and Swaraj Mazda as well. Cerita Motors has received an order from BEST for 200 of the low-floor city buses. All these orders should keep bus and related component manufacturers busy till the end of this year.
The bus industry, particularly the city bus segment, has witnessed a sea-change in the product and technology aimed at providing better passenger comfort and safety. Most major metros are opting for low floor or semi low floor AC/non-AC buses with automatic transmission, air suspension systems, automatic door opening and closing systems, vehicle tracking system, on-line passenger information system, LED sign boards, electronic ticketing, smart cards, etc.
It is one of the most fast paced government projects executed to near perfection. The JNNURM order under the Ministry of Urban Development set an ambitious target to add close to 15,000 buses in 61 major cities across the country. This is part of the Government’s initiative to provide better public transportation and reduce traffic congestion and pollution. The project is funded by the Ministry of Urban Development.“For the first time in the history of independent India, substantial assistance has been made available for purchase of 15,220 modern buses for city transport for 61 mission cities. These buses will be delivered by December 2009. As we consider public transport in cities a critical issue, we will try to organize assistance in procurement of such buses in 118 cities having a population of two lakhs and above”, said Mr. Jaipal Reddy, Minister for Urban Development, announcing the 100-day plan for his Ministry.
The process of placing orders by various State and city transport undertakings is being done on a war footing, and so far orders for 8,000 buses have already been placed with various vehicle manufacturers. The balance orders are also expected to be finalised in a month’s time. Out of the 15,000 buses, 20 per cent would be low-floor and semi low-floor AC and non-AC buses and the balance would be normal city buses.
Mr. Reddy has also taken it up with the Finance Ministry for completely doing away with the excise duty on public buses. Consequently, in the Budget for 2008-09, the excise duty was reduced from 16 to 12 per cent, and it was further reduced from 12 to 8 per cent in January 2009. The Ministry is making further efforts with MoF for reducing the excise duty from the eight to nil per cent.
The direct beneficiaries have been the vehicle manufacturers, with Tata Motors bagging a major share of close to 45 per cent of the total orders placed so far. Ashok Leyland has also bagged orders for 3,200 buses so far and further orders are expected.
Volvo has garnered a significant share of the order in the high-end low-floor AC city buses, and some orders have been bagged by Eicher Motors and Swaraj Mazda as well. Cerita Motors has received an order from BEST for 200 of the low-floor city buses. All these orders should keep bus and related component manufacturers busy till the end of this year.
The bus industry, particularly the city bus segment, has witnessed a sea-change in the product and technology aimed at providing better passenger comfort and safety. Most major metros are opting for low floor or semi low floor AC/non-AC buses with automatic transmission, air suspension systems, automatic door opening and closing systems, vehicle tracking system, on-line passenger information system, LED sign boards, electronic ticketing, smart cards, etc.
Mr. Akash Passey, Managing Director, Volvo Buses India Private Ltd., says: “The JNNURM scheme has set the direction and this probably is the first step. Hopefully, this will lead to even greater fillip to bringing in efficient and modern public transport for our cities, where we can all enjoy a better quality of city mobility”.
