Private bus transport operators called for better infrastructure, fairer taxes, and policy reforms to strengthen public transport, writes Upendra Kasbekar.
An engaging dialogue unfolded among transport operators, government representatives, and industry leaders. The discussion centred on addressing the numerous challenges faced by private bus operators, including inadequate infrastructure, unfavourable taxation policies, and the urgent need for regulatory reforms. Despite ferrying an astounding 33 crore passengers daily, constituting the bulk of the nation’s public transport sector, private operators continue to grapple with persistent structural and policy bottlenecks. The operators’ wish lists reflect a shared vision of creating a more inclusive, sustainable, and efficient public transport ecosystem.
A vision for a unified transport ecosystem
Prasanna Patwardhan, President of BOCI and Managing Director of Prasanna Group, outlined a clear vision for India’s public transport future. He emphasised the importance of a unified and well-integrated transport ecosystem that could reduce dependency on personal vehicles, thus alleviating traffic congestion and promoting environmental sustainability.
“All airlines together transport 7.5 lakh people daily, and the railways carry around 3.5 crore passengers. But buses handle a staggering 40 crore passengers, of which private operators contribute 33 crore,” noted Patwardhan, highlighting the critical role of private players. However, he pointed out a glaring disparity while China has seven buses per 1,000 people, India only has one, underscoring the urgent need to quadruple bus availability.
Patwardhan went on to stress that having a sufficient number of buses is only part of the solution; robust infrastructure is equally important. “We need better bus stations, modern highways, and appropriate public amenities. The government’s support in these areas is crucial,” he stated. On the taxation front, Patwardhan pointed out the disproportionate burden on private operators. For example, a private car worth Rs.50 lakh incurs Rs.7.5 lakh in tax over 15 years, whereas a bus of the same value pays nearly double that amount. He called for rational tax reforms and incentives to attract private investments into the sector.
Patwardhan also advocated for equitable treatment of private operators in terms of concessions. “If state-run buses can offer free travel, private operators should be compensated similarly. Otherwise, passengers are compelled to opt for state buses, leading to revenue losses for private operators.” He concluded by urging for more stage carriage permits, particularly in states like Karnataka, to enhance service coverage.
The infrastructure conundrum
The conversation on infrastructure was further enriched by Jagdish Patankar, Executive Chairman of MM Activ Sci-Tech Communications, pointed out that while India is aggressively building roads and highways, public transportation infrastructure has not kept pace.
“Constructing roads, tunnels, and highways is only part of the solution. Efficiently moving people should be the primary goal. It’s surprising that while India is planning 100 new airports, we don’t even have 10 well-functioning bus ports,” Patankar observed. He argued that promoting public transport could address issues ranging from traffic congestion to pollution. “Shifting people to public transport reduces accident rates, pollution, and carbon footprints while enhancing overall safety,” he concluded.
Policy reforms and modernisation
BOCI has been a staunch advocate for private operators, especially during crises like the COVID-19 pandemic. Maran D., Joint Treasurer of BOCI, recalled how the organisation helped operators during that difficult period. “We secured extensions for document validity, BSIV to BSVI regulations, and financial relief by renegotiating terms with the Reserve Bank of India (RBI),” Maran stated. Additionally, BOCI lobbied for tax relief across various states and facilitated the return of migrant workers during the lockdown.
Modernisation efforts have also been a priority for BOCI. Malik Patel, Senior Vice President of Tourist Taxis and Chairman of the BOCI Membership Committee, highlighted collaborations with major OEMs like Tata Motors, Maruti, and VECV. These partnerships aim to benefit even the smallest operators by offering better deals on vehicles and services. Patel also shared details of BOCI’s app, which integrates advanced technologies to streamline operations for operators and enhance passenger experience.
Navigating policy challenges
BOCI’s role in influencing policy was further elaborated by Dharmaraj D.R., Additional Secretary of BOCI. He explained how BOCI’s recommendations to the Ministry of Road Transport (MoRTh) have resulted in crucial amendments to the Motor Vehicle Act. “We’ve also worked with the Insurance Regulatory Development Authority (IRDA) to reduce third-party insurance premiums for school and employee transport buses,” Dharmaraj noted. Efforts to lower premiums for other categories of buses are ongoing.
Government recognition
Several government officials present at Prawaas 4.0 acknowledged the indispensable role of private operators in the public transport ecosystem. Ojing Tasing, Minister for Rural Development and Panchayati Raj, Arunachal Pradesh, emphasised the need for better infrastructure to make public transport more appealing. Karnataka’s Deputy Chief Minister, D.K. Shivakumar, expressed gratitude to private operators for serving 92 per cent of India’s bus passengers. He underscored the importance of integrated public transport systems and multi-modal terminals in cities like Bengaluru.
Challenges facing the next generation of operators
An emerging concern among operators is the reluctance of the younger generation to take over family-run transport businesses. “Many older operators are resistant to adopting new technologies and business practices, which discourages the younger generation,” observed an operator.
Echoing this sentiment, Saurabh Patwardhan from Purple Group and Shiva Sankeshwar of Vijayanand VRL Travels highlighted the need for operators to modernise, particularly in terms of branding and customer experience. “Passengers today expect safety, comfort, and convenience. Small changes, such as an easy booking system and respectful treatment of drivers, can significantly improve brand perception,” they suggested.
Building trust in bus services
Surya Khurana, Managing Director of FlixBus India, raised the issue of public trust in bus services. “Buses are often perceived as a last resort, chosen only when train seats are unavailable or private cars unaffordable. We need to change this perception by enhancing the reliability and quality of bus services,” he stated. Khurana urged the government to view public and private operators as complementary partners in advancing mass mobility.
Scrappage policy concerns
The recently implemented scrappage policy has sparked mixed reactions among operators. A small fleet operator from Chandigarh expressed concern about the financial impact of the policy. “I’ve operated a fleet of diesel and petrol vehicles for over a decade, with plans to run them for 15 to 20 years. Now, due to the policy, my vehicles are no longer allowed in Delhi. This has disrupted my business,” he lamented.
He further criticised the policy’s lack of foresight. “Had there been prior notifications, operators could have planned accordingly. Many bought second-hand vehicles, assuming they would serve for several more years, only to now face complete financial losses,” he added.
The operator proposed an alternative approach: scrapping based on emissions rather than vehicle age. “In many countries, vehicles are scrapped based on emissions. A well-maintained vehicle that meets modern emission norms should be allowed to operate, irrespective of its age,” he suggested.
Moving forward
The insights shared by private operators underscore the urgent need for policy reforms, infrastructure development, and modernised operations in India’s transport sector. Addressing these challenges is crucial to ensuring that public transport remains a viable, efficient, and attractive option for the future. With the right support, India’s private operators can continue to play a pivotal role in realising the nation’s mobility goals, ultimately contributing to a more sustainable and prosperous transport ecosystem.
