Private bus TRANSPORT operators called for better infrastructure, fairer taxes, and policy reforms to strengthen public transport, write Upendra Kasbekar and Richa Tyagi.
The Bus Operators Confederation of India (BOCI) has long been a key player in shaping the future of public transport in India. At Prawaas 4.0, a pivotal conversation unfolded between transport operators, government officials, and industry leaders, centred around improving India’s public transportation landscape. Despite the significant contribution of private bus operators, who move 33 crore passengers daily, the persistent challenges range from inadequate infrastructure to unfavourable taxation policies. The transporters’ wishlists call for a more robust, inclusive, and efficient transportation system.
Vision unified transport ecosystem
Prasanna Patwardhan, President of BOCI and Managing Director of Prasanna Group, shared the vision for the future of public transport in India. Yet again, he emphasised the significance of Prawaas 4.0 as a platform where the entire transport ecosystem comes together. The vision is clear—shifting more people from private vehicles to public transport, thus easing congestion and creating a more sustainable mobility model. “All airlines carry 7.5 lakh people daily; railways carry 3.5 crore people, but buses transport 40 crore passengers, out of which private operators handle 33 crore,” he said. “Yet, compared to China, where seven buses are available for every 1,000 people, India only has one bus per 1,000 people. Our requirement is at least four buses per 1,000 people,” Patwardhan drew attention to the vast gap in infrastructure.
Patwardhan’s concerns extended beyond bus availability. He noted that merely owning good buses is insufficient without the necessary infrastructure to support them. “We need good bus stations, better highways, and amenities for public transport. The government must support this sector by improving basic infrastructure,” he averred. He pointed at the unequal tax burden faced by private operators for example. “A private car worth Rs.50 lakh pays Rs.7.5 lakh in tax over 15 years, but a bus of the same value pays nearly double that amount over its life span. We need tax reforms to attract more startups and private investment into public transportation,” he urged. The vision calls for a shift in government policy, advocating for equitable concessions for both state and private operators. “If state-run buses offer free travel, private operators must also be compensated. Otherwise, passengers are forced into state buses, and private operators lose out,” he argued. He concluded with an appeal for more stage carriage permits for private operators, especially in states like Karnataka.
The critical role of infrastructure
The importance of infrastructure was also underscored by Jagdish Patankar, Executive Chairman of MM Activ Sci-Tech Communications—the Event Curator of Prawaas 4.0. Patankar stressed that while India is rapidly building roads and highways, the development of public transportation is lagging.”Building roads, tunnels, and highways is not a complete solution. Moving people efficiently is what matters. India may be constructing 100 airports, but we don’t even have 10 well-functioning bus ports. This is surprising, considering private operators transport 92 per cent of passengers,” he remarked.
Patankar also pointed out that promoting public transport could address numerous issues, from reducing traffic congestion to lowering pollution. “Shifting to public transport will help lower accident rates, pollution, and carbon footprints while enhancing safety. The government has a powerful tool in public transport; they just need to use it effectively,” he concluded.
Supporting operators through policy and innovation
BOCI has been instrumental in supporting operators during challenging times, particularly during the COVID-19 pandemic. Maran D., Joint Treasurer of BOCI, shared how the organisation helped bus operators navigate this difficult period. “BOCI played a key role in extending document validity and securing extensions for BSIV to BSVI regulations. We also managed to restructure contracts with the Reserve Bank of India (RBI), giving operators a six-month relief on financial obligations,” Maran informed. He added that BOCI’s state units worked tirelessly to secure tax relief for operators, while also helping migrants return home during the pandemic. Maran emphasised BOCI’s efforts to modernise operations through initiatives like faceless RTO systems, which benefit both operators and private car owners. “Applications like Vahan and Sarathi have revolutionised vehicle and driver management, and BOCI has been at the forefront of these efforts,” he stated.
This modernisation is not limited to administrative processes. Malik Patel, Senior Vice President of Tourist Taxis and Chairman of the BOCI Membership Committee, highlighted how BOCI has been working with Original Equipment Manufacturers (OEMs) to secure deals that benefit operators, both large and small. “We’ve partnered with major OEMs like Tata Motors, Maruti, Kia, and VECV. These partnerships ensure that even the smallest operators receive the benefits they deserve,” Patel said. He added that BOCI’s new app aims to integrate innovative technologies, making transportation more seamless for both operators and passengers.
Navigating the policy landscape
The role of BOCI in shaping policies and regulations was further elaborated by Dharmaraj D.R., Additional Secretary of BOCI. He explained how BOCI’s suggestions to the Ministry of Road Transport (MoRTh) have led to significant amendments in the Motor Vehicle Act. “ Our work with the Insurance Regulatory Development Authority (IRDA) also resulted in a reduction of third-party insurance premiums for school buses and employee transport buses,” Dharmaraj noted. He emphasised how BOCI is also continuing its efforts to reduce premiums for other types of buses.
Government acknowledgement
Government officials present at Prawaas 4.0 acknowledged the efforts of private operators but also recognised the challenges they face. Ojing Tasing, Arunachal Pradesh’s Minister for Rural Development and Panchayati Raj, stressed the need for better roads and infrastructure to make public transportation more attractive. Similarly, D.K. Shivakumar, Deputy Chief Minister of Karnataka, thanked private operators for their role in carrying 92 per cent of the country’s bus passengers. “I understand your challenges, and while I may not hold the portfolio to address them right now, I believe that one day, together, we will make significant changes,” Shivakumar said. He acknowledged that congestion has worsened since the COVID-19 pandemic, with more people opting for personal vehicles. He stressed the importance of integrated public transport systems and multi- modal terminals, particularly in major cities like Bengaluru.
The challenges of the next generation
One of the more personal challenges raised at the event was the reluctance of younger generations to take over family-run transport businesses. An operator attributed this to a clash between traditional and modern business practices. “It’s a technological world, but the older generation of operators resists new ideas. They don’t trust young minds or new technologies, which discourages the younger generation from continuing the business,” he opined. Saurabh Patwardhan from Purple Group and Shiva Sankeshwar of Vijayanand VRL Travels echoed this sentiment. They noted that many operators fail to adapt to changing times, especially when it comes to branding and customer experience. “Today’s travellers expect safety, comfort, and brand value. Small things like an easy booking system and treating drivers with respect can significantly enhance a company’s reputation. Transport operators need to view their brands as airlines do,”Aditya Sagar suggested.
Building trust in public transport
Surya Khurana, Managing Director of FlixBus India, highlighted a key issue facing private bus operators: the lack of trust among passengers. “Buses are often seen as a last resort. People choose buses only when they can’t secure railway reservations or afford private cars. We need to build trust in bus services for long-distance travel,” Khurana said.
He called on the government to create regulations that support private operators, arguing that public and private transport should be viewed as complementary rather than competing sectors. “We may not be on the same level as other major economies when it comes to promoting mass mobility, but we can get there with the right policies and support,” he concluded.
Concerns over scrappage policy: A small fleet operator’s perspective
On connecting with operators, we received mixed responses about the new scrappage policy. The policy in the Delhi-NCR region, for example, is aimed at reducing vehicular pollution through the scrappage of old vehicles as per stipulated norms. It has sparked concerns among many private transport businesses. A small fleet operator from Chandigarh, who requested anonymity, shared his apprehensions regarding the impact of this policy on his livelihood. He expressed that while the initiative is beneficial for the environment, it has created unforeseen challenges for those running private transport fleets. “I have been operating a small fleet of diesel and petrol vehicles between Chandigarh and Leh for over a decade,” he began. “When I started this business, there were no such stringent policy in place. I had long-term plans to run these vehicles for at least 15 to 20 years. But now, with the sudden enforcement of the scrappage age policy, my diesel vehicles are no longer allowed to enter Delhi’s boundaries. It’s a major disruption to my business,” he informed.
He further elaborated on how this sudden policy change has left small operators like him scrambling for alternatives. “It is not just about the environmental regulations. It is about the lack of foresight in the government’s planning,” he argued. “Had there been proper guidelines or notifications issued a few years ago, people could have avoided buying second-hand vehicles that are now on the verge of being scrapped. Those who invested in older vehicles, thinking they had several years of service left, are facing a complete financial loss,” he reasoned.
The operator emphasised that the financial strain on second-hand vehicle owners is substantial. Many of these vehicles are still in good working condition and could run efficiently for another 10 years. But with the policy in place, these cars are being forced off the roads. For small business owners or individuals who are not financially strong, the sudden loss of a vehicle can be devastating. “They simply cannot afford to buy new ones, especially when the prices of new vehicles continue to rise,” he mentioned.
He estimated that the scrappage policy could result in economic losses of approximately Rs.2,300 crore annually, adding immense financial stress not only on private owners but also on the broader transport industry. “The government seems to have overlooked the ripple effect this policy will create. Small fleet owners and operators like myself, who have built their business over years, are now facing an uncertain future,” he pointed. The operator also raised another significant issue: “There’s a growing conflict in regions like Ladakh, where locals are preventing out-of-state commercial vehicles, such as rented bikes, from crossing borders. My business involves renting out bikes from Chandigarh to Ladakh, but now, local bike renters in Leh and Ladakh are blocking entry for our bikes. This is creating further losses, and the government has not taken any strong action to resolve the issue. It feels like we are being squeezed from all sides,” he expressed.
He concluded by suggesting an alternative approach to the scrappage policy, one that’s based on emissions rather than vehicle age. “In many countries, the decision to scrap a vehicle is determined by its carbon emissions, not its age. A car that meets modern emission standards should still be allowed to operate, regardless of how old it is. This approach would not only be fairer but also more aligned with the real goal of reducing pollution,” he urged.
The transporter’s wishlists expressed at Prawaas 4.0 is a reflection of the broader challenges and opportunities facing India’s public and private transportation sectors. The operators’ voices highlight the need for better infrastructure, equitable policies, and modernised operations to ensure that public transport remains a viable and attractive option for the future. If India is to achieve its goal of becoming a “Viksit Bharat” by 2047, the concerns of private transport operators must be addressed with urgency and innovation. Only then can the country create a transportation ecosystem that moves both people and the economy forward.
